Mapletree Logistics Trust Review @ 19 January 2023

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): 186

Key Indicators

Performance Highlight

Gross revenue, NPI, distributable income and DPU increased yoy mainly due to contribution from properties acquired in 1Q FY22/23 and FY21/22.

Rental Reversion

Rent reversion for the latest quarter is at +2.9%.

Divestment

MLT announced the proposed divestment of 3 Changi South Lane and 2 properties in Malaysia in Dec 2022 and Jan 2023 respectively. Divestment for 3 Changi South Lane is expected to be completed by 4Q FY22/23 (which is between Jan - Mar 2023) while the Malaysia properties are expected to be completed by 1H FY23/24.

Development

The redevelopment of 51 Benoi Road is targeted to be completed by 1Q 2025 which 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 0.45%. 

Distribution Breakdown

• Distributable Income Breakdown:
• 85.2% from Operation
• 12.7% from Fees Paid/Payable in Units
• 0.8% from Income Support
• 1.3% from Divestment
• Distribution = 100% of Distributable Income
• Distribution to Perpetual Securities Holder = 5% of Distributable Income

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 20%
• Highest lease expiry within 5 years: ± 10% from median; Falls in FY23/24
• 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 %: Above median for more than 10%
• Unsecured debt %: ± 10% from median
• 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: Below median for more than 10%

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%; $4.85 distribution for every dollar paid 
  
• Distribution on capital: ± 10% from median
• Distribution margin: Above median for more than 20%

Trends

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

Relative Valuation

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

Author's Opinion

Favorable	Less Favorable
High REIT Sponsor's Shareholding	Low REIT Manager's Shareholding
High Fixed Rate Debt %	Low Directors of REIT Manager's Shareholding
Long 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	Low Interest Coverage Ratio
High Distribution Margin	Non Competitive Management Fees
DPU Uptrend	Interest Coverage Ratio Downtrend
NAV per Unit Uptrend	Property Yield Downtrend
	Distribution on Capital Downtrend

Performance has declined slightly as compared to the previous quarter mainly due to the depreciation of RMB, JPY, KRW and AUD against SGD and the increase in interest cost. To reduce the impact, the manager has hedged 79% of the next 12 months' income into SGD and 83% of the debt with a fixed rate.

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 Review - List of previous REIT review 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 content

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

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

*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my own findings and should not be considered as professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decisions.