MAPLETREE LOGISTICS TRUST (SGX:M44U)
Mapletree Logistics Trust - Steady Growth; Eyeing More Acquisitions
- Mapletree Logistics Trust's 3QFY21 DPU rose 1.0% y-o-y.
- Positive rental reversions of 1.6%.
- On the lookout for further inorganic growth opportunities.
Mapletree Logistics Trust's 3QFY21 results in-line with our expectations
- Mapletree Logistics Trust (SGX:M44U) reported its 3QFY21 (Oct 2020 to Dec 2020) results which met our expectations. Gross revenue and NPI jumped 15.5% and 14.9% to S$139.9m and S$124.7m, respectively. This was driven by higher revenue from existing properties and contribution from acquisitions and redevelopment properties, but partially offset by rental rebates granted to eligible tenants. DPU rose 1.0% y-o-y to S$0.02065.
- For 9MFY21, Mapletree Logistics Trust’s NPI grew 11.9% to S$362.4m, while DPU of S$0.06165 represented a growth of 1.2% and formed 75.1% of our FY21 forecast.
Occupancy inched down marginally by 0.4 ppt but rental reversions positive at 1.6%
- Mapletree Logistics Trust’s portfolio occupancy declined slightly by 0.4 ppt q-o-q to 97.1%. Hong Kong and Japan were the only two countries which registered a lower occupancy.
- For Hong Kong, it was due to reduced business volume and consolidation of space by some tenants.
- For Japan, occupancy fell due to the addition of a recently acquired property (Higashi Hiroshima Centre) which is only 33% occupied. However, management expressed confidence that it would be able to ramp up the property to full occupancy over a three to six months time horizon. This would bring the stabilised NPI of the asset up to 4.5%.
- Overall portfolio rental reversions came in positive at 1.6%, with strong growth coming from Vietnam (+3.7%), Hong Kong (+3.0%) and China (+2.6%).
On the lookout for more acquisitions, with India as a potential new market
- Looking ahead, Mapletree Logistics Trust said that it was seeking further new acquisition opportunities, and this would be supported by its healthy aggregate leverage of 36.8% (as at 31 Dec 2020). South Korea and India are its likely near-term destinations. Should negotiations turn out to be successful, it would allow Mapletree Logistics Trust to rejuvenate its portfolio in South Korea and also mark its maiden entry into India.
- Management believes India would be an important market to look at given its large domestic consumption and e-commerce trends. It is eyeing stabilised assets with high occupancy rates in major logistics hubs such as Mumbai, Pune, New Delhi and Bangalore.
- 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.
- We factor in Mapletree Logistics Trust’s recent acquisition in Japan in our model, and also roll forward our valuations. Consequently, our fair value estimate increases from S$2.12 to S$2.17.
OCBC Research Team
OCBC Investment Research
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https://www.iocbc.com/
2021-01-26
SGX Stock
Analyst Report
2.17
UP
2.120
