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Sunday, February 20, 2022

Mapletree Logistics Trust Review @ 20 February 2022

Basic Profile & Key Statistics

Mapletree Logistics Trust (MLT) is a logistics REIT that invests in 167 properties across 9 countries.

Performance Highlight

Gross revenue, NPI, distributable income to unitholders and DPU have increased YoY due to higher income from existing properties, contribution from properties that acquired in FY21/22 and FY20/21 and lower rental rebates granted to eligible tenants.

Rental Reversion
Rental reversion for the latest quarter is at +2.5%.

Acquisition
In November and December 2021, MLT has completed acquisition of 4 properties. In January 2022, MLT has completed the acquisition of 15 properties. The remaining acquisitions of Mapletree Logistics Hub in Malaysia and a logistics property in China are target to complete by February and April respectively. 

Related Parties Shareholding

  • REIT sponsor's shareholding is high at 29.077%
  • REIT manager's shareholding is low at 0.052%
  • Directors of REIT manager's shareholding is low at 0.019%

Lease Profile

  • Occupancy is high at 97.8%
  • Income in SGD/Major Currencies is low at 46.8%.
  • WALE is short at 3.6 years
  • Highest lease expiry within 5 years is high at 29.5% which falls in FY22/23
  • Weighted average land lease expiry is slightly short at 54.83 years

Debt Profile

  • Gearing ratio is slightly low at 34.7%. Include perps, gearing is at 39.6%.
  • Cost of debt is moderate at 2.2%
  • Fixed rate debt % is moderate at 79%
  • Unsecured debt % is high at 91.1%
  • WADM is long at 3.5 years
  • Highest debt maturity within 5 years is low at 20% which falls in FY25/26
  • Interest coverage ratio is slightly low at 4.3 times
  • Preferred/perpetual securities over debt is slightly high at 12.4%

Diversification Profile

  • Top geographical contribution is low at 29.3% 
  • Top property contribution is low at 9.1% 
  • Top 5 properties contribution is low at 22.1% 
  • Top tenant contribution is low at 7.1% 
  • Top 10 tenants contribution is low at 25.3%
  • 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 19.9% in which unitholders receive S$ 5.03 for every dollar paid 
  • Distribution on capital is moderate at 3.6%
  • Distribution margin is high at 55.9%
  • 2.7% of DPU is from distribution from asset disposal

Trends

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

Relative Valuation

  • P/NAV - Below -1SD for 1y & 3y; Average for 5y
  • Dividend Yield - Above +2SD for 1y; Above average for 3y; Average 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
High Unsecured Debt %Low Income in SGD/Major Currencies
Long WADMShort WALE
Well Spread Debt MaturityConcentrated Lease Expiry
Low Top Geographical ContributionNon-Competitive Management Fees
Low Top Property & Top 5 Properties ContributionsInterest Coverage Ratio Downtrend
Low Top Tenant & Top 10 Tenants Contributions 
High Distribution Margin 
DPU Uptrend 
NAV per Unit Uptrend 
Distribution Margin Uptrend

MLT performance has improved as compared to the previous quarters due to the recent acquisitions in South Korea, Australia and Japan. Moving forward, MLT performance should be improved from the full quarter contribution from those properties which were acquired in November & December as well as contribution from those which were acquired in January.


You could also refer below for more information:

SREITs Dashboard - Detailed information on individual Singapore REIT

SREITs Data - Overview and Detail of Singapore REIT

REIT Analysis - List of previous REIT analysis posts


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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.

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