Mapletree Logistics Trust's 4Q FY24/25 Result Review

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Mapletree Logistics Trust (MLT) reported a mixed set of results for 4Q FY24/25:

• Gross revenue and NPI dipped slightly year-on-year, primarily due to lower contributions from China, currency depreciation, and absence of revenue from divested assets.
• These were partially offset by stronger performance from Singapore, Australia, and Hong Kong SAR, as well as contributions from acquisitions completed in 1Q FY24/25.
• DPU declined 11.6% YoY to 1.955 cents, impacted by lower NPI, higher borrowing costs, and smaller capital distributions from divestments.

Rental Reversion

MLT achieved an overall portfolio rental reversion of +5.1% for the quarter. While most markets recorded positive reversions, China continued to be a drag with a -9.4% rental reversion. Notably, Japan saw a strong +15.7% reversion.

Divestment

During the quarter, three properties were divested at a premium to their latest valuations while four more properties are pending divestment completion.

Redevelopment

The redevelopment of 5A Joo Koon Circle (previously 51 Benoi Road) is in progress and is expected to be completed in May 2025. Additionally, the amalgamation and redevelopment of Subang 3 and 4 is awaiting regulatory approval, with completion targeted 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

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

Debt Profile

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

Diversification Profile

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

Key Financial Metrics

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

DPU Breakdown

• TTM Distribution Breakdown:
• 79.5% from Operation
• 13.9% from Management Fees Paid in Units
• 6.6% from Divestment Proceeds

Trends (Up to 10 Years)

• Uptrend: NAV per Unit
• Slight Uptrend: None
• Flat: DPU from Operations, Committed Occupancy
• Slight Downtrend: Operating Distributable Income Margin
• Downtrend: Adjusted Interest Coverage Ratio, Top 5 Properties' Weightage, Top 10 Tenants' Weightage, Property Yield, Operating Distributable Income over Manager's Fees, Operating Distributable Income on Capital, Operating Distribution Proportion

Price Range & Relative Valuation Metrics

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

Author's Opinion

Compared to the previous quarter, MLT’s performance weakened slightly, largely due to a decline in contributions from China and the absence of income from recently divested properties. For debt, only 7% of the total debt maturing in the next fiscal year.

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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.