Mapletree Logistics Trust - Maybank Kim Eng 2019-04-29: More Stable, Less Growth

MAPLETREE LOGISTICS TRUST (SGX:M44U) | SGinvestors.io MAPLETREE LOGISTICS TRUST (SGX:M44U)

Mapletree Logistics Trust - More Stable, Less Growth

In line with MKE and consensus; prefer Ascendas REIT




Occupancy up slightly; broad-based improvement

  • Mapletree Logistics Trust's 4Q19 revenue/NPI rose 13.0%/15.0% y-o-y as redevelopment projects (76 Pioneer Road, Ouluo Phase 1 in China) and acquisitions offset two Singapore divestments.
  • Occupancy rose q-o-q to 98.0% with growth except in China (down from 95.8% to 95.5%). Tenant, JD.com (JD US, Not Rated) downsized earlier with some space backfilled at +2-3% rental reversion.


Firm demand for CWT assets, limited downside risk

  • We believe demand for newer high-specs logistics properties in Singapore will remain tight due to expansion activities (Amazon, etc).
  • Management indicates keen leasing interest from 3PLs for its CWT-related properties, especially for 6 Fishery Port (equipped with food storage facilities); CWT’s receivers are unlikely to disrupt its Singapore operations.


SGD475m debt headroom - eyeing China ROFR assets

  • Management continues to see better DPU visibility in Hong Kong (22.0% of its revenue) and China (10.1%) in tier-1 cities due to tight supply. In Vietnam, spill-over gains from the China-US trade conflict should likewise support DPU growth.
  • Mapletree Logistics Trust remains optimistic on the China logistics market, and will be selective on deals from its sponsor.
  • It still has debt headroom of around SGD475m (at 45% limit) for ROFR deals to support growth. Gearing was 37.7% at end-Mar 2019, but it has since declined to 36.2% following its 10 Apr SGD213.3m Japan divestments.





Chua Su Tye Maybank Kim Eng Research | https://www.maybank-ke.com.sg/ 2019-04-29
SGX Stock Analyst Report HOLD MAINTAIN HOLD 1.400 SAME 1.400



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