Basic Profile & Key Statistics
Key Indicators
Performance Highlight
Gross revenue and NPI have improved slightly YoY. Distributable income to unitholders and DPU improved YoY mainly due to the distribution of divestment gain amounting to S$ 12.378 million. Without divestment gain distribution in 3Q FY23/24 and income support in 3Q FY22/23, DPU declined by around 9%.
Rental Reversion
Rental reversion for 3Q FY23/24 is at 3.8%.
Acquisition
Acquisition of a Grade A Warehouse in Farukhnagar, Delhi NCR, India is expected to be completed by 4Q FY23/24.
Divestment
The divestment of Century and 10 Tuas Avenue 13 has been completed between November and December. As for Flexhub and Padi, the divestment is expected to be completed by 1H FY24/25. All these divestment sales are above valuation.
Redevelopment
Construction work for the 51 Benoi Road redevelopment is expected to be completed by 1Q 2025.
ESG Initiative
Total solar generation capacity improved 36% YoY.
Related Parties Shareholding
The sponsor holds a relatively high number of shares, whereas the manager and directors of the REIT manager hold a relatively low number 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.
Debt Profile
The cost of debt is on the low side. Debt maturity is well spread with a relatively long WADM.
Diversification Profile
Overall diversification profile is excellent.
Key Financial Metrics
The operating distributable income margin is favorable. However, management fees are non-competitive, and both operating distributable income on capital and operating distribution proportion are relatively low.
DPU Breakdown
- TTM Distributable Income Breakdown:
- 80.6% from Operation
- 12.1% from Management Fees Paid in Units
- 7.3% from Divestment Proceeds
Trends
- Uptrend: NAV per Unit
- Flat: DPU from Operation, Committed Occupancy
- Downtrend: Adjusted Interest Coverage Ratio, Property Yield, Operating Distributable Income on Capital, Operating Distributable Income Margin
Relative Valuation
- Dividend Yield - Above +1SD for 1y, 3y & 5y
- P/NAV - Below -1SD for 1y & 5y; Average for 3y
In comparison to the previous quarter, MLT's performance slightly declined, mainly attributed to the absence of revenue from divested properties, reduced contribution from China, and depreciation of JPY against SGD. Regarding debt, only 2% requires refinancing in the next 3 months, and 7% in the next fiscal year. With 83% of debt fixed/hedged, the cost of debt is expected to remain low, although management anticipates rising borrowing costs as expiring interest rate swaps are replaced at higher rates.
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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