Basic Profile & Key Statistics
Key Indicators
Performance Highlight
Gross revenue, NPI and amount distributable to unitholders remain similar YoY. However, it's worth noting that the slight increase in distributable income is attributed to the distribution of divestment gain amounting to S$12 million this year, compared to S$2.86 million last year. DPU on the other hand, declined YoY due to an enlarged unitholder base.
Rental Reversion
Rental reversion for 4Q FY23/24 is at 2.9%.
Acquisition
In February, MLT completed the acquisition of Farrukhnagar in Delhi. Additionally, MLT announced the proposed acquisition of one property in Malaysia and two properties in Vietnam during the same month.
Divestment
MLT divested 73 Tuas South Avenue 1 in February. Additionally, two properties in Malaysia are expected to complete divestment by 1H FY24/25.
Redevelopment
Construction work for the 51 Benoi Road redevelopment is expected to be completed by 1H 2025.
Related Parties Shareholding
The sponsor holds a relatively high proportion of shares, whereas the manager and directors of the REIT manager hold a relatively low proportion of shares.
Lease Profile
The WALE is relatively short with a concentrated lease expiry in FY24/25. The weighted average land lease expiry is relatively short as well. In addition, the proportion of income in SGD/major currencies is low.
Debt Profile
The cost of debt is relatively low, and there is a relatively high proportion of fixed-rate debt. Debt maturity is well spread out, with a relatively long WADM.
Diversification Profile
The diversification profile is excellent.
Key Financial Metrics
The operating distributable income margin is favorable. However, management fees are relatively high compared to operating distributable income, and the operating distribution proportion is relatively low.
DPU Breakdown
- TTM Distribution Breakdown:
- 78.5% from Operation
- 12.2% from Management Fees Paid in Units
- 9.3% from Divestment Proceeds
Trends
- Uptrend: NAV per Unit
- Flat: DPU from Operation, Committed Occupancy
- Slight Downtrend: Operating Distributable Income Margin
- Downtrend: Adjusted Interest Coverage Ratio, Property Yield, Operating Distributable Income on Capital
Relative Valuation
- Dividend Yield - Above +2SD for 1y, 3y & 5y
- P/NAV - Below -2SD for 1y; Below -1SD for 3y & 5y
Compared to the previous quarter, performance has declined slightly, mainly attributed to higher property expenses, higher borrowing costs, absence of revenue from divested properties and the depreciation of other currencies against SGD. Regarding debt, only 5% requires refinancing in the next 12 months.
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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