Mapletree Logistics Trust Review @ 24 July 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): 185

Key Indicators

Performance Highlight

Gross revenue, NPI, amount distributable and DPU have increased yoy mainly due to higher revenue from existing properties and multiple acquisitions in 1Q FY22/23 and FY21/22. DPU increment in terms of % is lower due to an enlarged unitholder base.

Rental Reversion

Rental reversion for the latest quarter is at 3.4%.

Acquisition

MLT acquired 2 logistics properties in China and South Korea in the latest quarter. Besides the above, MLT has completed the acquisition of 2 parcels of leasehold industrial properties in Malaysia on 14th July.

Development

The redevelopment of 51 Benoi Road is target to be completed by 1Q 2025. This redevelopment would increase the GFA by 2.3 times.

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: ± 10% from median; 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 FY26/27
• 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 10%
• 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%; $4.93 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
• Flat: Occupancy, Distribution Margin
• Slight Downtrend: Interest Coverage Ratio, Distribution on Capital
• Downtrend: Property Yield

Relative Valuation

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

Author's Opinion

Favorable	Less Favorable
High REIT Sponsor's Shareholding	Low REIT Manager's Shareholding
High Unsecured Debt %	Low Directors of REIT Manager's Shareholding
High WADM	Low Income in SGD/Major Currencies
Well Spread Debt Maturity	Short WALE
Low Top Geographical Contribution	Short Weighted Average Land Lease Expiry
Low Top Property & Top 5 Properties Contributions	High Perpetual Securities %
Low Top Tenant & Top 10 Tenants Contributions	Non-Competitive Management Fees
High Distribution Margin	Property Yield Downtrend
DPU Uptrend
NAV per Unit Uptrend

MLT continues to deliver a good set of results this quarter. From the presentation, management mentioned that their focus in FY22/23 would be proactive asset management, portfolio rejuvenation, value-accretive acquisitions and prudent capital management, which should benefit unitholders in upcoming quarters ahead.

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

And you could join the following to support my work:

Singapore REITs Post Telegram Channel - Join to receive posts for Singapore REITs

REIT-TIREMENT Patreon - Support my work and get exclusive contents

REIT-TIREMENT Facebook Page - Support by liking my Facebook Page

REIT Investing Community - Facebook Group where members share and discuss REIT topic

*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.