Mapletree Logistics Trust - OCBC Investment 2020-04-27: Right Place To Find Shelter But At A Lower Entry Level

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

Mapletree Logistics Trust - Right Place To Find Shelter But At A Lower Entry Level

  • Mapletree Logistics Trust's 4QFY20 DPU +1.2% y-o-y.
  • Positive rental reversions of 2.0%; firm occupancy rate of 98%.
  • Boost from positive e-commerce trends, but not immune to weaker macro backdrop.



4QFY20 results in-line with our expectations

  • Mapletree Logistics Trust (SGX:M44U) reported an in-line set of 4QFY20 results. Gross revenue and NPI increased 5.5% and 9.3% y-o-y to S$128.1m and S$114.7m, respectively. DPU grew at a smaller magnitude of 1.2% y-o-y to 2.048 S cents due to higher income tax expenses and a larger unit base.
  • For FY20, Mapletree Logistics Trust’s DPU improved 2.5% to 8.142 S cents and this formed 100.7% of our forecast.




Firm operating metrics

  • Mapletree Logistics Trust’s operating metrics showcased its continued resiliency. Portfolio occupancy increased slightly by 0.3 ppt q-o-q to 98.0% as there were increases seen in Hong Kong and China. Australia, Malaysia and Vietnam maintained their full occupancy.
  • On the rental front, Mapletree Logistics Trust achieved positive rental reversions of 2.0% in 4QFY20, the breakdown of which are as follows:
    • Malaysia +4.5%,
    • Vietnam +3.9%,
    • Hong Kong +3.7%,
    • Australia +1.3%,
    • China +1.1%,
    • Singapore +0.9% and
    • South Korea +0.6%.
  • Management had delivered positive rental uplifts for all quarters in FY20.



Positive boost from e-commerce growth, but watchful of softer macroeconomic outlook






OCBC Research Team OCBC Investment Research | https://www.iocbc.com/ 2020-04-27
SGX Stock Analyst Report HOLD UPGRADE SELL 1.79 SAME 1.590



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