Mapletree Industrial Trust's 1Q FY24/25 Result Review

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Gross revenue, NPI, distribution to unitholders, and DPU have improved slightly YoY due to revenue contributions from the Osaka Data Centre acquired in September 2023 and the absence of withheld distributions by the joint venture as in 1QFY23/24. Notably, while the amount available for distribution has increased significantly, the distribution to unitholders has only seen a slight improvement.

The distribution to unitholders this quarter includes $13.4 million from divestment gains spread over four quarters, which is not specific in the available distribution amount. Hence, it appears that management has retained close to $4 million this quarter, including $3.35 million (one-fourth of $13.4 million) and $0.67 million (the difference between $97.925 million and $97.254 million).

Rental Reversion

The weighted average rental reversion is at 9.2%.

Related Parties Shareholding

The directors of the REIT manager hold a relatively high number of shares.

Lease Profile

The WALE is long, and the lease expiry is well-spread. However, the land lease expiry is relatively short.

Debt Profile

Overall, the debt profile is excellent.

Diversification Profile

The portfolio is diversified in terms of properties and tenants but is geographically concentrated.

Key Financial Metrics

Property yield, operating distributable income on capital and operating distributable income margin are relatively high.

DPU Breakdown

• TTM Distribution Breakdown:
• 94.8% from Operation
• 1.4% from Management Fees Paid in Units
• 2.5% from Divestment Proceeds
• 1.2% being Retained

Trends (Up to 10 Years)

• Uptrend: DPU from Operations, NAV per Unit
• Flat: Committed Occupancy
• Slight Downtrend: Operating Distribution Proportion
• Downtrend: Adjusted Interest Coverage Ratio, Property Yield, Operating Distributable Income over Manager's Fees, Operating Distributable Income on Capital, Operating Distributable Income Margin

Price Range & Relative Valuation Metrics

• Dividend Yield - Average for 1y, 3y, 5y & 10y
• P/NAV - Average for 1y, 3y, 5y & 10y

Author's Opinion

As compared to the previous quarter, despite a drop in gross revenue, NPI remains similar due to lower property operating expenses. Borrowing costs decreased as well due to loan repayment from divestment proceeds from the Tanglin Halt Cluster. However, the distribution declared by the joint venture is lower as management released the withheld distribution in the previous quarter.

As described in the performance highlight section above, I estimate that management has retained $4 million this quarter (assuming the "4" footnote was not inadvertently omitted at the amount available for distribution to unitholders). With that, the DPU from operations actually improved YoY and QoQ.

For debt, excluding JV bank loans, there is no refinancing requirement in this fiscal year.

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.