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Mapletree Logistics Trust’s Latest Earnings: What Investors Should Know

Credit: Axisadman

Mapletree Logistics Trust (SGX: M44U) is the first Asia-focused logistics REIT in Singapore with a portfolio of 124 logistics assets in Singapore, Hong Kong, Japan, Australia, China, Malaysia, South Korea and Vietnam.

Yesterday, the REIT announced its financial results for the third-quarter ended 31 December 2017. Here’s a quick rundown on the financial figures from the earnings release:

1. Gross revenue for the quarter grew 2.8% year-on-year to S$98.2 million.

2. Net property income rose 3.9% to S$83.0 million.

3. Amount distributable to unitholders surged 24.5% to S$58.3 million.

4. Distribution per unit (DPU) was at 1.907 cents, up 2% from 1.870 cents seen a year ago. The muted increase was due to an enlarged units base after an equity fundraising that was carried out in September last year.

5. As at 31 December 2017, the net asset value (NAV) per unit was S$1.05. In comparison, at the end of September 2017, the figure came in at S$1.03.

The rise in gross revenue for the quarter was due to a stable performance from the existing assets and contributions from acquisitions. This was partly offset by non-contribution from three divested properties in Japan and Singapore, and one block in China’s Ouluo Logistics Centre which is undergoing redevelopment.

Earlier this month, the trust also completed the divestment of Senai-UPS in Malaysia for MYR 28 million (around S$9.2 million).

For the quarter, portfolio occupancy went up to 96.2% from 95.8% in the previous quarter. The increase was due to higher occupancies in Hong Kong, South Korea and Malaysia. Meanwhile, the weighted average lease expiry by net lettable area was 3.6 years.

As at 31 December 2017, Mapletree Logistics Trust’s aggregate leverage was 37.8%, and the average debt duration was 4.6 years. In comparison, as at 30 September 2017, the figures were at 33.7% and 4.7 years respectively. Higher total debt brought about the increase in gearing level. However, the REIT has no refinancing risk for the upcoming financial year.

Looking ahead, the logistics REIT said the following:

“The economic outlook for Asia is improving alongside the firming in global growth. As a portfolio, the Manager continues to see sustained leasing activities across its diversified markets supporting stable rental and occupancy rates. However, in Singapore, the market continues to face pressure from a high supply of warehouse space.”

Mapletree Logistics Trust is now selling at S$1.36 per unit. This gives a price-to-book ratio of 1.3 and a trailing distribution yield of 5.5%.

We believe we’ve identified a dividend dynamo whose financials are strong enough to qualify its dividend as “safe” – and have profiled this stock in a research report that’s now available to download completely free of charge. Simply click here to claim your copy today!

The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.