REIT-TIREMENT - REITs Investing & Personal Finance

REITs investing & personal finance

Wednesday, October 25, 2023

Mapletree Logistics Trust Review @ 25 October 2023

Basic Profile & Key Statistics
  • Main Sector(s): Logistics
  • Country(s) with Assets: Singapore, China, Hong Kong, Japan, South Korea, Australia, Malaysia, Vietnam & India
  • No. of Properties (exclude development/associate/fund): 189

Key Indicators

Performance Highlight
Gross revenue and NPI improved slightly YoY mainly due to the higher income from existing properties and contribution from newly acquired properties. Distributable income, on the other hand, improved YoY mainly due to higher distribution from divestment proceeds. Excluding distribution from divestment proceeds, the amount distributable to unitholders declined by 2.3% and DPU declined by approx. 5.4%.

Rental Reversion
Rent reversion for the latest quarter is at +0.2%.

In the latest quarter, MLT divested 4 properties. There is another divestment expected to be completed by this fiscal year.

Construction work for the 51 Benoi Road redevelopment started in July and is expected to be completed by 1Q 2025.

Related Parties Shareholding

  • REIT Sponsor's Shareholding: Above median by 20% or more
  • REIT Manager's Shareholding: Below median by 20% or more
  • Directors of REIT Manager's Shareholding: Below median by 20% or more

Lease Profile

  • Committed Occupancy: ± 5% from median
  • Income in SGD/Major Currencies: Below median by 20% or more
  • WALE: Below median by 20% or more
  • Highest Lease Expiry within 5 Years: Above median by 20% or more; Falls in FY24/25
  • Weighted Average Land Lease Expiry: Below median by 20% or more

Debt Profile

  • Gearing Ratio: ± 10% from median
  • Gearing including Perps: ± 10% from median
  • Cost of Debt: Below median by 20% or more
  • Fixed Rate Debt %: ± 10% from median
  • Unsecured Debt %: ± 5% from median
  • WADM: Above median by 20% or more
  • Highest Debt Maturity within 5 Years: Below median by 20% or more; Falls in FY27/28
  • Interest Coverage Ratio: ± 10% from median

Diversification Profile

  • Top Geographical Contribution: Below median by 20% or more
  • Top Property Contribution: Below median by 20% or more
  • Top 5 Properties' Contribution: Below median by 20% or more
  • Top Tenant Contribution: Below median by 20% or more
  • Top 10 Tenants' Contribution: Below median by 20% or more

Key Financial Metrics

  • Property Yield: ± 10% from median
  • Management Fees over Operating Distributable Income: Above median by 20% or more; $4.10 distribution for every dollar paid 
  • Operating Distributable Income on Capital: ± 10% from median
  • Operating Distributable Income Margin: Above median by 10% or more
  • Operating Distribution Proportion: Below median by 5% or more

DPU Breakdown
  • TTM DPU Breakdown:
    • 83.2% from Operation
    • 12.1% from Management Fees Paid in Units
    • 0.1% from Income Support
    • 4.6% from Proceeds from Divestment 


  • Uptrend: NAV per Unit
  • Slight Uptrend: DPU from Operation
  • Flat: Committed Occupancy
  • Downtrend: Interest Coverage Ratio, Property Yield, Operating Distributable Income on Capital, Operating Distributable Income Margin

Relative Valuation

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

Author's Opinion

 FavorableLess Favorable
High REIT Sponsor's ShareholdingLow Directors of REIT Manager's Shareholding
Low Cost of DebtLow Income in SGD/Major Currencies
Well Spread Debt MaturityConcentrated Lease Expiry
Low Top Geographical ContributionShort Weighted Average Land Lease Expiry
Low Top Property & Top 5 Properties' ContributionsNon Competitive Management Fees
Low Top Tenant & Top 10 Tenants' ContributionsLow Operating Distribution Proportion
High Operating Distributable Income MarginInterest Coverage Ratio Downtrend
NAV per Unit UptrendProperty Yield Downtrend
 Operating Distributable Income on Capital Downtrend
 Operating Distributable Income Margin Downtrend

In comparison to the prior quarter, there has been an improvement in both gross revenue and NPI. However, despite the NPI improvement and similar borrowing costs and divestment proceeds, the distributable income from operations (after excluding management fees payable in units and divestment proceeds) has experienced a decline of approximately 12.8%. The management fees payable in units for this quarter have surged to $22.371 million, which is more than double the $10.17 million from the previous quarter, albeit it is a norm that the amount is always higher in fiscal 2Q. Again, the absence of a detailed breakdown for the "adjustment for net effect of non-tax deductible items and other adjustments" in the quarterly financial statements (NOTE A in the distribution statement) makes it challenging to fully understand this decline.

For more information, check out:

SREITs Dashboard - Detailed information on individual Singapore REIT

SREITs Data - Overview and details of Singapore REIT

REIT Review - List of previous REIT review posts

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*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 findings and should not be considered 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.

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