MAPLETREE LOGISTICS TRUST (SGX:M44U)
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
- Mapletree Logistics Trust’s aggregate leverage ratio increased slightly by 0.4 ppt q-o-q to 37.2%, with 80% of its borrowings hedged for a tenure of approximately 4 years.
- Management highlighted that it was still actively exploring inorganic growth opportunities, but will adopt a more estimate for Mapletree Logistics Trust is lowered from S$2.00 to S$1.92.
- See
OCBC Research Team
OCBC Investment Research
|
https://www.iocbc.com/
2022-07-22
SGX Stock
Analyst Report
1.92
DOWN
2.000
