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REITs investment & personal finance


Wednesday, May 18, 2022

Mapletree Logistics Trust Review @ 18 May 2022

Basic Profile & Key Statistics
  • Main Sector(s): Logistics
  • Country(s) with Assets: Singapore, China, Hong Kong, Japan, Australia, South Korea, Malaysia, Vietnam & India
  • No. of Properties (exclude development/associate/fund): 183

Performance Highlight

Gross revenue, NPI, adjusted distributable income to Unitholders and adjusted DPU improved yoy mainly due to contributions from properties acquired in FY21/22 and lower rental rebates.

Rental Reversion
Rental reversion for the latest quarter is at 2.9%.

Acquisition

In 2022, MLT has completed the acquisition of Mapletree Logistics Hub in Malaysia, Baeksa Logistics Centre in South Korea, 13 properties in China and 3 properties in Vietnam.

Sensitivity to Interest Rate
For every 0.25% increase in interest rate, DPU would be impacted by 0.01 cent per quarter, around 0.4%.

Related Parties Shareholding

  • REIT sponsor's shareholding: Above median for more than 20%
  • REIT manager's shareholding: Below median for more than 20%
  • Directors of REIT manager's shareholding: Below median for more than 20%

Lease Profile

  • Occupancy: ± 5% from median
  • Income in SGD/Major Currencies: Below median for more than 20%
  • WALE: Below median for more than 10%
  • Highest lease expiry within 5 years: Above median for more than 20%; Falls in FY22/23
  • Weighted average land lease expiry: Below median for more than 20%

Debt Profile

  • Gearing ratio: ± 10% from median
  • Gearing including perps: ± 10% from median
  • Cost of debt: ± 10% from median
  • Fixed rate debt %: ± 10% from median
  • Unsecured debt %: Above median for more than 10%
  • WADM: Above median for more than 20%
  • Highest debt maturity within 5 years: Below median for more than 20%; Falls in FY25/26
  • Interest coverage ratio: ± 10% from median

Diversification Profile

  • Top geographical contribution: Below median for more than 20%
  • Top property contribution: Below  median for more than 20%
  • Top 5 properties' contribution: Below median for more than 20%
  • Top tenant contribution: Below median for more than 20%
  • Top 10 tenants' contribution: Below median for more than 20%

Key Financial Metrics

  • Property yield: ± 10% from median
  • Management fees over distribution: Above median for more than 20%; $4.96 distribution for every dollar paid 
  • Distribution on capital: ± 10% from median
  • Distribution margin: Above median for more than 10%

Trends

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

Relative Valuation

  • P/NAV: Below -1SD for 1y, 3y & 5y
  • Dividend Yield: Above +2SD for 1y; Above +1SD for 3y; Average for 5y

Author's Opinion

 Favorable Less Favorable
High REIT Sponsor's ShareholdingLow REIT Manager's Shareholding
High Unsecured Debt %Low Directors of REIT Manager's Shareholding
Long WADMLow Income in SGD/Major Currencies
Well Spread Debt MaturityShort WALE
Low Top Geographical ContributionConcentrated Lease Expiry
Low Top Property & Top 5 Properties ContributionsShort Weighted Average Land Lease Expiry
Low Top Tenant & Top 10 Tenants ContributionsNon-Competitive Management Fees
High Distribution MarginInterest Coverage Ratio Downtrend
DPU UptrendProperty Yield Downtrend
NAV per Unit Uptrend

Compared to the previous quarter, the performance has improved due to the full contribution from properties acquired between Sep to Dec 2021. With more acquisitions completed in this quarter, MLT performance is expected to further improve moving forward.


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 due to 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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