Mapletree Logistics Trust - OCBC Investment 2022-07-22: Decent Results Amid Macro Uncertainties


Mapletree Logistics Trust - Decent Results Amid Macro Uncertainties

  • Mapletree Logistics Trust's 1QFY23 (1 Apr 2022 to 30 Jun 2022) distribution per unit (DPU) rose 5.0% y-o-y to S$0.02268.
  • Positive average rental reversions of 3.4% with stable occupancy of 96.8%.
  • Capital recycling to support inorganic growth.

Mapletree Logistics Trust (MLT)'s 1QFY23 results in-line with expectations

  • Mapletree Logistics Trust (SGX:M44U)’s 1QFY23 results met our expectations, with gross revenue and net property income (NPI) increasing 14.6% and 13.2% y-o-y to S$187.7m and S$163.2m, respectively.
  • DPU rose 5.0% y-o-y to S$0.02268, and this was the 6th consecutive quarter in which Mapletree Logistics Trust grew its DPU by at least 5.0% on a y-o-y basis.
  • Mapletree Logistics Trust's 1QFY23 DPU accounted for 24.9% of our full-year forecast.

Positive average rental reversions of 3.4%; portfolio occupancy stable at 96.8%

  • Mapletree Logistics Trust achieved overall portfolio rental reversions of 3.4% in 1QFY23, led by Singapore (+4.3%), India (+4.1%), Vietnam (+3.9%), Japan (+3.7%) and Malaysia (+3.5%). China’s rental reversion came in at 2.8%, softer than the previous quarter and management attributed it to the impact from the lockdowns in Shanghai.
  • While Mapletree Logistics Trust expects rental reversions in China to remain relatively soft for most of 2QFY23, it expects a recovery towards the end of the quarter, assuming no deterioration in the COVID-19 situation, especially in the Tier-1 cities where supply remains tight and tenants are still keen on well-located assets.
  • Mapletree Logistics Trust’s portfolio occupancy inched down by 0.1 percentage point (ppt) q-o-q to 96.8%. Vietnam, Australia, India and Hong Kong registered full occupancy, while the increase in Japan (+0.8 ppt q-o-q to 99.2%) was offset by slight declines in Singapore (-0.7 ppt q-o-q to 98.3%), South Korea (-0.2 ppt q-o-q to 98.0%) and China (-0.2 ppt q-o-q to 92.9%).
  • Management believes that it can sustain or even improve its portfolio occupancy at current levels.

Prudent capital management approach to be maintained

OCBC Research Team OCBC Investment Research | https://www.iocbc.com/ 2022-07-22
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