Mapletree Logistics Trust's 3Q FY24/25 Result Review

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Gross revenue and NPI showed a slight  YoY decline, primarily driven by lower contributions from China and the weakening of foreign currencies against the SGD. The amount distributable to unitholders and DPU declined due to a combination of higher borrowing costs, reduced distributions from divestment gains, and increased tax expenses.

Rental Reversion

The overall portfolio rental reversion stood at 3.4%, which is a positive sign. However, China continued to experience negative rental reversions. Notably, Australia saw a significant double-digit rental reversion

Divestment

In November, 3 properties were divested while 6 are pending divestment completion. All these divestments are at a premium to valuation.

Redevelopment

The redevelopment of 51 Benoi Road is in progress, with completion expected in 1H 2025. Meanwhile, the amalgamation of Subang 3 and 4 is awaiting approval from relevant authorities, with expected completion in 1H 2028. 

Related Parties Shareholding

• REIT Sponsor's Shareholding: Moderate
• REIT Manager's Shareholding: Less Favorable
• Directors of REIT Manager's Shareholding: Less Favorable

Lease Profile

• Occupancy: Moderate
• Income Received in SGD/Major Currencies: Less Favorable
• WALE: Less Less Favorable
• Highest Lease Expiry in 4 Years: Less Favorable
• Weighted Average Land Lease Expiry: Less Favorable

Debt Profile

• Gearing Ratio: Moderate
• Cost of Debt: Favorable
• Fixed Rate Debt %: Favorable
• Unsecured Debt %: Moderate
• WADM: Less Favorable
• Highest Debt Maturity in 4 Years: Favorable
• Interest Coverage Ratio: Moderate

Diversification Profile

• Top Geographical Contribution: Favorable
• Top Property Contribution: Favorable
• Top 5 Properties' Contribution: Favorable
• Top Tenant Contribution: Favorable
• Top 10 Tenants' Contribution: Favorable

Key Financial Metrics

• Property Yield: Moderate
• Management Fees over Operating Distributable Income: Moderate
• Operating Distributable Income on Capital: Less Favorable
• Operating Distributable Income Margin: Favorable
• Operating Distribution Proportion: Less Favorable

DPU Breakdown

• TTM Distribution Breakdown:
• 79.1% from Operation
• 13.4% from Management Fees Paid in Units
• 7.5% 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 over Manager's Fees, Operating Distributable Income on Capital, Operating Distribution Proportion

Price Range & Relative Valuation Metrics

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

Author's Opinion

Compared to the previous quarter, gross revenue and NPI have remained relatively stable, with only a slight decline. For debt, there is no debt maturity in this fiscal year, and 12% of debt will mature in the next fiscal year. 

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SREITs Dashboard - Detailed information on individual Singapore REIT

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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.