10 Quick Things That Investors Should Know About Mapletree Logistics Trust’s Latest Result

Mapletree Logistics Trust (SGX: M44U) — or MLT — is a real estate investment trust (REIT) that owns 124 logistics properties around Asia and Australia.

The REIT has recently announced its fourth quarter results for the year ending March 2018 (4Q FY17/18). Here, we will look at 10 things that investors should know about its latest result.

  1. In the latest quarter, gross revenue grew 17.9% year-on-year to S$ 38.0 million whilst net property income (NPI) improved by 18.2% during the period to S$ 34.1 million.
  2. Distribution per unit (DPU) was up by 4.1% as compared to the same period last year. The 4.1% year-on-year growth was achieved despite an increase in shares from 2.5 billion last year to 3.058 billion this year.
  3. Based on FY17/18 full year DPU of 7.618 Singapore cents and closing price of S$1.26 as at 27 April 2018, the REIT has a trailing distribution yield of 6.0%.
  4. As of 31 March 2018, the REIT’s gearing stood at 37.7%, which is a safe distance from the regulatory ceiling of 45%.
  5. The REIT’s committed occupancy rate stood at 96.6% at the end of the quarter.
  6. The portfolio achieved an average rental reversion of 2.6% for FY17/18.
  7. Weighted average expiry profile stood 3.5 years by NLA (net lettable area), with 44.5% of leases to expire in the next two years, 30.6% of leases to expire in the following three years, and the remaining to expire after five years.
  8. Single-User Asset and Multi-Tenanted Buildings accounted for 34% and 66%, respectively, of current quarter revenue breakdown.
  9. During FY17/18, MLT acquired Mapletree Logistics Hub Tsing Yi and the remaining 38% in strata share value of Shatin No. 3, both of which are located in Hong Kong. It also divested four properties in Japan, Singapore and Malaysia.
  10. The REIT also provided the following outlook:

“With continued economic growth projected for the region, demand for logistics properties is expected to remain healthy across MLT’s diversified markets. Possible escalation in trade tension and faster than expected interest rate rise in advanced economies may temper this expected growth.

In Singapore, the leasing environment remains competitive in the near term as it takes time for the existing vacant warehouse space to be absorbed by the market. However, new supply is expected to taper in the coming years. In Hong Kong, favourable supply-demand dynamics should continue to support rental rates and high occupancies. MLT’s portfolios in Japan and Australia remain stable, underpinned by 100% occupancy rates and long leases. “

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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 Lawrence Nga doesn’t own shares in any companies mentioned.