MAPLETREE LOGISTICS TRUST
M44U.SI
Mapletree Logistics Trust - 4QFY16 Results Flash Note
- We make no change to our NEUTRAL rating, forecast and DDM-derived TP of SGD0.89, forward dividend yield of 6.9%.
Highlights
- 4Q/FY16 DPS declined 2.7/1.6% YoY, meeting c.98% of our full year forecasts.
- Income contributions were lifted by strong results from Hong Kong assets, offset by weaker performance in Singapore.
- Positive rental reversion of 4%, mainly driven from Hong Kong and Singapore assets.
- Portfolio occupancy remained stable at 96.2%.
Other takeaways
- Management expects challenges to persist on, given the uncertain macroeconomics outlook. Thus, expecting pressure on rent rates.
- Additionally, management noted that tenants are increasingly cautious, and slower to commit in the current environment.
- Singapore assets came in weaker mainly due to the conversions of several single-user assets (SUAs) to multi-tenanted buildings (MTBs) amidst rising supply of warehouse supply.
- c.15% of its net lettable area (NLA) faces lease expiries in FY16/17, of which 5.1% (6 buildings) are SUAs.
- AEI works at Moriya Centre (Japan) and redevelopment of a SG asset (Toh Guan Rd) were completed in Mar 16, and is expected to make its respective contributions in FY16/17.
- Gearing ratio stood at 39.6%, with a healthy interest coverage of 5.9x.
Our View:
- Aligned with MLT’s expectations of the industrial leasing market, we are not too optimistic too. As warehouse supply remains high in the
- next two years amidst the weaker economic outlook, we opine that warehouse landlord would face resistance in hiking their rental rates.
- As we see no catalyst to re-rate the counter, we remain Neutral, with no change in our assumption on MLT.
Ivan Looi
RHB Invest
|
http://www.rhbinvest.com.sg/
2016-05-03
RHB Invest
SGX Stock
Analyst Report
0.89
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0.89
