Mapletree Logistics Trust (MLT) - UOB Kay Hian 2017-07-25: 1QFY18 Results In Line

Mapletree Logistics Trust (MLT) - UOB Kay Hian 2017-07-25: 1QFY18 Results Of MLT (In Line) MAPLETREE LOGISTICS TRUST M44U.SI

Mapletree Logistics Trust (MLT) - 1QFY18 Results Of MLT (In Line)

  • MLT’s results are in line with expectations, with portfolio rental reversions of +6% and +0.4% in the quarter respectively. 
  • MLT holds a mixed outlook with confidence in Hong Kong and trepidation in Singapore due to its single-user assets. 
  • Maintain BUY and target price of S$1.29. 
  • Maintain OVERWEIGHT on the sector.



WHAT’S NEW

  • Mapletree Logistics Trust (MLT) reported quarterly results.


ACTION 


Results in line; maintain BUY and target price of S$1.29, based on DDM (required rate of return: 6.7%, terminal growth: 1.7%). 

  • MLT reported 1QFY18 DPU of 1.887 S cents, up 2.0% yoy. 
  • Gross revenue and NPI increased 7.0% yoy and 7.5% yoy respectively on the back of stronger contributions from Singapore and Hong Kong properties, in addition to recent acquisitions. 
  • Distributable income increased by a slower 2.5% yoy due to the higher base on divestment gains. The overall increase in distributable income was supported by the partial distribution of divestment gains from the 20 Old Toh Tuck Road and 20 Tampines Street 92 properties. 
  • Results were in line with expectations, forming 25.3% of our full-year DPU estimate.

Slight decline in overall occupancy to 95.5%. 

  • The 0.8ppt decline in average occupancy was attributed to lower occupancy in South Korea from a property that was being converted from a single-user asset to a multi-tenanted building. Excluding this, occupancy rates in most other countries improved qoq, including Singapore, Hong Kong, China and Vietnam.




Vikrant Pandey UOB Kay Hian | http://research.uobkayhian.com/ 2017-07-25
UOB Kay Hian SGX Stock Analyst Report BUY Maintain BUY 1.290 Same 1.290



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