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

REIT_TIREMENT
01-31

$Mapletree Log Tr(M44U.SI)$

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 Operation13.4% from Management Fees Paid in Units7.5% 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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