Mapletree Logistics Trust - Maybank Kim Eng 2021-01-26: Another Steady Quarter

MAPLETREE LOGISTICS TRUST (SGX:M44U)

Mapletree Logistics Trust - Another Steady Quarter

Mapletree Logistics Trust (SGX:M44U) delivered a stable 3QFY21 (Oct 2020 to Dec 2020) as DPU rose 1.0% y-o-y due to higher rental income and earlier acquisitions offsetting its divestments and provisions for rental relief. See Mapletree Logistics Trust's announcements. Our forecasts are unchanged and we expect its occupancies to remain resilient due to steady demand growth.
Mapletree Logistics Trust’s growing APAC-focused AUM is well-positioned to capture the sector’s multiple structural growth themes, i.e. rising e-commerce demand and supply chain diversification, which have been accelerated by the pandemic.
Mapletree Logistics Trust remains among our top S-REIT picks. See our recent report: Singapore REITs - Maybank Kim Eng 2021-01-04: Reset, Recover. Our DDM-based target price (COE: 5.4%, LTG: 2.0%) stays at S$2.40.

Mapletree Logistics Trust's revenue and NPI rose 15.5% y-o-y and 14.9% y-o-y due to higher contributions from existing properties, acquisitions and the completed Ouluo Phase 2 redevelopment.
Portfolio occupancy was stable at 97.1%, reflecting lower occupancies in Hong Kong and Japan, partly offset by higher occupancies in China and South Korea.
Its portfolio rental reversion was +1.6%, up slightly from +1.5% in 2Q21, mainly contributed by its leases in Hong Kong (+3.0%), China (+2.6%), Vietnam (+3.7%) and Malaysia (+2.2%).

Leasing activity was strong with 266,000 sqm (~4% of portfolio) renewed or replaced during the quarter (from 326,000 sqm in 2Q21). Single-asset expiries over FY21-22 remained low at 2.2% and its WALE was stable at 3.7 years.
Demand continues to be driven by e-commerce tenancies and 3PLs. In Singapore, management is seeing an uptick in last-mile activity, which has offset slower demand for general cargo. The supply outlook remains constructive and we see positive demand-led fundamentals supporting rental recovery

See Mapletree Logistics Trust Share Price; Mapletree Logistics Trust Target Price; Mapletree Logistics Trust Analyst Reports; Mapletree Logistics Trust Dividend History; Mapletree Logistics Trust Announcements; Mapletree Logistics Trust Latest News.
Mapletree Logistics Trust's leverage has declined q-o-q from 39.5% to 36.8% as of end-Dec 2020, after the completion of the S$644m equity fund raising. Mapletree Logistics Trust's AUM has risen from S$9.0b to S$10.2b with the acquisitions of the China, Malaysia and Vietnam portfolio, and two deals in Australia and Japan.
Debt headroom at S$3.0b (50% limit) on our estimates is ample to fund further deals, as management looks to add another S$200-400m from third-parties in South Korea and India.

Chua Su Tye Maybank Kim Eng Research | https://www.maybank-ke.com.sg/ 2021-01-26

SGX Stock Analyst Report BUY MAINTAIN BUY 2.400 SAME 2.400