3 Key Things to Know About Mapletree Logistics Trust

Mapletree Logistics Trust (SGX: M44U) held its annual general meeting (AGM) in July.

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 REIT from its AGM presentation slides. I have picked out three slides that might be insightful for investors:

1. Beyond Singapore

Mapletree Logistics Trust shared this summary during its AGM. The slide shows the revenue and asset value split by geography:

Source: Mapletree Logistics Trust’s earnings presentation

Mapletree Logistics Trust is listed in Singapore, but it makes most of its money from its overseas properties.

From the above, we can see that the three biggest contributors are Singapore, Japan and Hong Kong. The REIT’s home country contributed 38.7% to its overall revenue in the financial year ended 31 March 2017 (FY16/17). Meanwhile, Japan accounted for over 19% of revenue while Hong Kong pitched in almost 15% of sales.  

2. Land leases

One key area to watch would be the 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 37.4% of its leases end in less than 40 years. The REIT has made a push to deepen its presence in Australia. As a result, the number of freehold properties has also increased from 40 assets a year ago to 47 assets at FY16/17’s end.

But Mapletree Logistics Trust will have to raise funds to get new properties into its portfolio.

3. Debt profile

The slide below shows the summary of Mapletree Logistics Trust’s debt profile.  

Source: Mapletree Logistics Trust’s earnings presentation

At the end of March 2017, the REIT had just under $2.2 billion in debt and a leverage ratio of 38.5%. More importantly, its debt maturity is well-staggered with no single year accounting for more than 17% of total debt. With the spread-out distribution, Mapletree Logistics Trust might not face as much pressure to refinance its debt from year-to-year.

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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.