MAPLETREE LOGISTICS TRUST (SGX:M44U)
Mapletree Logistics Trust - Stronger Appetite For Acquisitions
- Mapletree Logistics Trust's 2QFY22 DPU rose 5.7% y-o-y to 2.173 cents.
- Positive rental reversions of 2.4%.
- Raised guidance for FY22 acquisitions to ~S$1.6b.
DPU growth momentum continues
- Mapletree Logistics Trust (SGX:M44U)'s recent 2QFY22 results met our expectations. Gross revenue and NPI jumped 25.2% and 21.5% y-o-y to S$165.1m and S$144.4m, respectively. DPU rose 5.7% y-o-y to 2.173 cents, which was a similar growth pace as compared to 1QFY22.
- For 1HFY22, Mapletree Logistics Trust’s NPI increased by 21.4% to S$288.6m, while DPU grew 5.7% to 4.334 cents and constituted 50.0% of our FY22 forecast.
Positive rental reversions improved to 2.4%; portfolio occupancy unchanged at high level of 97.8%
- Mapletree Logistics Trust achieved overall portfolio rental reversions of 2.4% in 2QFY22, which was a slight improvement from 1QFY22’s 2.2% rental uplift. This was driven by Vietnam and Malaysia (both +3.0%), Hong Kong (+2.6%) and China (+2.5%).
- While Mapletree Logistics Trust’s rental reversions trend has been positive, management highlighted that its tenants are still generally cautious given the COVID-19 situation, and hence are resistant towards more significant increases in rental renewal rates.
- Mapletree Logistics Trust’s portfolio occupancy remained unchanged q-o-q at 97.8%, as the increase in Singapore (+0.5 percentage points (ppt) q-o-q to 98.1%) and Japan (+0.3 ppt to 96.2%) was offset by declines in China (-0.6 ppt to 95.9%) and marginally in Hong Kong (-0.1 ppt to 99.7%).
Targeting more acquisitions ahead
- Mapletree Logistics Trust said that it is seeing an active pipeline of potential acquisitions ahead, including from its sponsor. One potential significant transaction could come from a third-party in Japan in the near-term, while China, Vietnam and Malaysia are markets which it can tap on its sponsor’s pipeline.
- Overall, management guided that it could be looking at ~S$1.6b worth of acquisitions in FY22, which would be similar to FY21. This is much more aggressive as compared to the previous quarter where management appeared much more cautious on inorganic growth opportunities.
- One of the reasons for the change in tone was due to Mapletree Logistics Trust’s sponsor turning more receptive towards divestments. Mapletree Logistics Trust’s aggregate leverage ratio was unchanged q-o-q at 38.2%, but is expected to increase to close to 40% after the completion of its announced acquisitions. After some fine-tuning, our fair value estimate for Mapletree Logistics Trust remains at S$2.10.
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Mapletree Logistics Trust - ESG Updates
- Mapletree Logistics Trust has relatively average policies and programmes on managing its ESG risks and opportunities as compared to peers. It has implemented relatively robust employee engagement and career development programmes, such that its employee turnover is significantly lower than the industry average.
- Given that industrial buildings tend to have less energy and water consumption as compared to retail and office properties, Mapletree Logistics Trust has less opportunities to capitalise on green buildings. It has implemented energy efficiency initiatives and has some LEED-certified properties, but lags peers in obtaining green building certification for a substantial portion of its portfolio.
OCBC Research Team
OCBC Investment Research
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https://www.iocbc.com/
2021-11-10
SGX Stock
Analyst Report
2.100
SAME
2.100
