MAPLETREE LOGISTICS TRUST (SGX:M44U)
Mapletree Logistics Trust - Hunger For Further Inorganic Growth Opportunities
- Mapletree Logistics Trust's 4QFY21 DPU rose 5.5% y-o-y to 2.161 cents.
- Positive rental reversions of 2.4% during the quarter.
- Eyeing larger scale acquisitions.
Mapletree Logistics Trust's 4QFY21 results in-line with our expectations
- Mapletree Logistics Trust (SGX:M44U) reported its 4QFY21 results which met our expectations. Gross revenue and NPI jumped 22.6% and 19.1% y-o-y to S$157.0m and S$136.7m, respectively. DPU rose 5.5% y-o-y to 2.161 cents.
- For the full-year in FY21, Mapletree Logistics Trust's NPI increased by 13.8% to S$499.1m, while DPU was up 2.3% to 8.326 cents despite the pandemic and this came in at 101.5% of our forecast.
Positive rental reversions of 2.4% while portfolio occupancy saw an improvement
- Mapletree Logistics Trust’s portfolio occupancy recorded an improvement of 0.4 percentage points (ppt) q-o-q to 97.5%. The increase was driven by Hong Kong, China and South Korea while its other markets were stable. Mapletree Logistics Trust completed the acquisition of two logistics properties in Pune, India, in Mar 2021, and occupancy for these assets was 98.2% on a blended basis, as at 31 Mar 2021.
- Overall portfolio rental reversions were positive at 2.4% in 4QFY21, with all markets achieving positive rental uplifts. The stronger performers were Japan (+5.7%), Vietnam (+3.8%), Malaysia (+3.3%) and Hong Kong (+3.2%). Performance in China was more mixed, with the tier-1 cities exhibiting stronger growth due to better demand and supply dynamics, while tier-2 cities had lower occupancy rates and rental reversions.
Capital recycling to continue
- Mapletree Logistics Trust recorded a net appreciation of S$184m in the valuation of its investment properties. This was aided by a compression in cap rates in most geographies such as China, Japan, South Korea and Australia.
- On a same store basis, there was a 2.4% uplift in its portfolio valuation. Given the portfolio revaluation gains, Mapletree Logistics Trust's aggregate leverage ratio stood at 38.4%, as at 31 Mar 2021, even after completing the acquisitions of five properties in South Korea and two properties in India in Mar 2021.
- Management highlighted that it was prepared to explore larger acquisition sizes ranging from S$600m to S$1b in FY22, and this would be partially balanced by potentially S$200m of divestments.
- After adjustments and increasing our risk-free rate assumption from 1.55% to 1.9%, our fair value estimate for Mapletree Logistics Trust declines from S$2.17 to S$2.10.
- 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.
OCBC Research Team
OCBC Investment Research
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https://www.iocbc.com/
2021-04-22
SGX Stock
Analyst Report
2.10
DOWN
2.170
