3 Key Slides from Mapletree Logistics Trust’s Annual General Meeting

Credit: Axisadman

Mapletree Logistics Trust (SGX: M44U) held its annual general meeting (AGM) last week.

As a brief background, Mapletree Logistics Trust is a real estate investment trust (REIT) that owns 127 logistics properties around Asia. It was listed on 28 July 2005 and is Singapore’s first Asian focused logistics REIT. We can learn more about the latest developments from the REIT’s AGM. I have picked out three slides that were particularly important:

A jump back …

A year ago, Mapletree Logistics Trust shared this slide during its AGM:

Source: Mapletree Logistics Trust’s earnings presentation

The slide shows the revenue and asset value split by geography. From the above, we can see that the three biggest contributors are Singapore, Japan and Hong Kong. We also see that Australia only contributed 2.6% to its overall revenue in the financial year ended 31 March 2016 (FY15/16).

However, there has been a stronger emphasis in Australia in FY16/17.

…. and fast forward  

Last week, Mapletree Trust Logistics Trust shared the same summary with updated figures:

Source: Mapletree Logistics Trust’s earnings presentation

From the above, we can see that Singapore, Japan and Hong Kong remain as the largest revenue contributor to Mapletree Logistics Trust.    

However, we can also see that there has been a notable shift in revenue contribution from Australia. The percentage contribution rose to 6.4%, a significant increase compared to the 2.6% recorded in the prior year.

There is a good reason for this shift in geographical emphasis, which becomes apparent in next slide below.  

The impact on land leases

The slide below summarises the lease tenure of its underlying properties by country.  

Source: Mapletree Logistics Trust’s earnings presentation

Singapore and Hong Kong are major revenue contributors, but the vast majority of its leases fall below 60 years. The contribution from Australia is most visible from the addition of freehold land into the mix. Last year, the weighted average lease term was 42 years. But the tenure had increased to 47.2 years at the end of March 2017. The number of freehold properties had also increased from 40 assets a year ago to 47 assets at FY16/17’s end.

The three slides above provide insights into the REIT’s move into Australia. 

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong owns units in Mapletree Logistics Trust.