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

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Gross revenue and NPI remain similar YoY. However, DPU has declined due to higher borrowing costs, lower distribution from divestment gain and the absence of written back of prior years’ tax provisions.

Rental Reversion

Portfolio rental reversion for 1Q FY24/25 is at 2.6%, with only China properties having negative rental reversion.

Acquisition

MLT completed the acquisition of 3 properties in May and June. 

Divestment

MLT divested 2 properties in May and June. Additionally, 2 more properties are expected to complete divestment by 2Q & 3Q FY24/25.

Redevelopment

Construction work for the 51 Benoi Road redevelopment is underway and expected to be completed by 1H 2025. While for the amalgamation of Subang 3 and 4, it is still seeking approval for land amalgamation from various government or state authorities.

Related Parties Shareholding

The manager and directors of the REIT manager hold a relatively low proportion of shares.

Lease Profile

The WALE and the weighted average land lease expiry are relatively short. Additionally, the proportion of income in SGD or major currencies is low.

Debt Profile

The cost of debt is relatively low, and there is a 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:
• 78.6% from Operation
• 12.6% from Management Fees Paid in Units
• 8.9% from Divestment Proceeds

Trends (Up to 10 Years)

• 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, Operating Distribution Proportion, Operating Distributable Income over Manager's Fees

Price Range & Relative Valuation Metrics

• Dividend Yield - Above +1SD for 1y ; Above +2SD for 3y & 5y; Average for 10y
• P/NAV - Below -1SD for 1y, 3y, 5y & 10y

Author's Opinion

Compared to the previous quarter, performance remains similar but DPU has declined by 6.5% mainly due to a lower amount of distribution from divestment gain. Regarding debt, only 3% will be maturing 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.