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Tuesday, October 26, 2021

Mapletree Logistics Trust Review @ 26 October 2021

Basic Profile & Key Statistics

Mapletree Logistics Trust (MLT) is a logistics REIT that invests in 163 properties across 9 countries.

Performance Highlight

Gross revenue, NPI, distribution and DPU increased YoY mainly due to contribution from acquisitions completed in FY20/21, higher occupancy from Mapletree Ouluo Logistics Park Phase 2 which completed redevelopment in 1Q FY20/21 and higher revenue from existing properties.

Rental reversion is at 2.4% for 2Q FY21/22. 

There are 4 proposed acquisitions that are pending. Besides the Mapletree Logistics Hub in Malaysia, the other 3 are targeted to be completed by this year end.

Related Parties Shareholding

  • REIT sponsor's shareholding is high at 31.221%
  • REIT manager's shareholding is low at 0.054%
  • Directors of REIT manager's shareholding is low at 0.02%

Lease Profile

  • Occupancy is high at 97.8%
  • Income in SGD/Major Currencies is low at 47.9%.
  • WALE is moderate at 3.7 years
  • Highest lease expiry within 5 years is slightly high at 28.5% which falls in FY22/23
  • Weighted average land lease expiry is slightly short at 55.08 years

Debt Profile

  • Gearing ratio is moderate at 38.2%. Include perps, gearing is at 42.1%.
  • Cost of debt is  low at 2.2%
  • Fixed rate debt % is moderate at 76%
  • Unsecured debt % is high at 91.3%
  • WADM is high at 3.6 years
  • Highest debt maturity within 5 years is low at 20% which falls in FY23/24
  • Interest coverage ratio is high at 5.2 times
  • Preferred/perpetual securities over debt is moderate at 9.3%

Diversification Profile

  • Top geographical contribution is low at 30.1% 
  • Top property contribution is low at 9.1% 
  • Top 5 properties contribution is low at 22.1% 
  • Top tenant contribution is low at 7.3% 
  • Top 10 tenants contribution is low at 25.8%
  • Top 3 countries contribution is from Singapore, Hong Kong and China which contribute around 2/3 of GRI

Key Financial Metrics

  • Property yield is moderate at 5.2%
  • Management fees over distribution is high at 19.7% in which unitholders receive S$ 5.08 for every dollar paid 
  • Distribution on capital is moderate at 3.6%
  • Distribution margin is high at 55.9%
  • 1.9% of DPU is from distribution from asset disposal (exclude 5 divested properties in Japan and 7 Tai Seng Drive)

Trends

  • Uptrend - DPU, NAV per Unit, Distribution Margin
  • Flat - Distribution on Capital
  • Downtrend - Interest Coverage Ratio, Property Yield

Relative Valuation

  • P/NAV - Average for 1y & 3y; Above average for 3y & 5y
  • Dividend Yield - Above average for 1y; Below average for 3y; Below -1SD for 5y

Author's Opinion

 Favorable Less Favorable
High REIT Sponsor's ShareholdingLow REIT Manager's Shareholding
High OccupancyLow Directors of REIT Manager's Shareholding
Low Cost of DebtLow Income in SGD/Major Currencies
High Unsecured Debt %Non-Competitive Management Fees
High WADMInterest Coverage Ratio Downtrend
Well Spread Debt MaturityProperty Yield Downtrend
High Interest Coverage Ratio 
Low Top Geographical Contribution 
Low Top Property & Top 5 Properties Contributions 
Low Top Tenant & Top 10 Tenants Contributions 
High Distribution Margin 
DPU Uptrend 
NAV per Unit Uptrend 
Distribution Margin Uptrend

MLT fundamentals remain solid and continue to deliver a good quarter performance. With the positive rental reversion and announced acquisitions which are targeted to complete by this year end, its performance should be improved moving forward.


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*Disclaimer: Materials in this blog are based on my research and opinion which I don't guarantee accuracy, completeness, and reliability. It should not be taken as financial advice or a statement of fact. I shall not be held liable for errors, omissions and loss or damage as a result of the use of the material in this blog. Under no circumstances does the information presented on this blog represent a buy, sell, or hold recommendation on any security, please always do your own due diligence before any decision is made.

2 comments:


  1. Thanks and I benefitted from your Good analysis and well written article :) Will you be doing similar analysis for MIT, MCT and MNACT ? Any plan for Ascendas Reit 3QFY21 business update analysis ?

    ReplyDelete
    Replies
    1. Thanks for your compliment. Will definitely review MIT MCT & MNACT. But would not review AREIT this time as no performance information in business update.

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