Mapletree Logistics Trust (SGX: M44U), or MLT, is a real estate investment trust (REIT) that owns 134 logistics properties around Asia and Australia.
On Monday, MLT reported its first quarter results for the year ending 31 March 2019 (FY18/19). Here, we will look at 10 things that investors should know about its latest results:
1. In the latest quarter, gross revenue grew by 10.1% year-on-year to S$105.4 million whilst net property income improved by 11.1% during the period to S$89.8 million.
2. Distribution per unit (DPU) was up by 3.7% year-on-year to 1.957 cents. The 3.7% year-on-year growth was achieved despite an increase in shares from 2.5 billion last year to 3.2 billion this year.
3. Based on MLT’s annualised DPU of 7.83 Singapore cents and closing price of S$1.28 as of 23 July 2018, the REIT has a trailing distribution yield of 6.1%.
4. As of 30 June 2018, the REIT’s gearing stood at 36.4%, which is a safe distance from the regulatory ceiling of 45%.
5. The REIT’s committed occupancy rate stood at 97.1% at the end of the quarter.
6. MLT’s portfolio achieved an average rental reversion of 2.0% for the quarter.
7. The weighted average lease expiry profile stood 3.3 years by NLA (net lettable area), with 41.3% of leases to expire within the next two years, 34.9% 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 33% and 67%, respectively, of current quarter revenue.
9. MLT acquired 50% interest in 11 properties in China and divested one property in Singapore during the quarter.
10. The REIT also provided the following outlook:
“While the global economy continues on a steady expansionary path, downside risks have increased as the escalating trade tensions between major economies and rising interest rates may undermine global growth.
About 82% of MLT’s total debt has been hedged into fixed rates while about 73% of income stream for FY18/19 has been hedged into or is derived in Singapore dollar. In the markets where MLT operates, demand for prime logistics space has remained stable, underpinned by domestic consumption and the growth of e-commerce.
On 5 July 2018, MLT announced the proposed acquisition of five modern, ramp-up logistics properties in Singapore for approximately S$778.3 million. The acquisition is in line with MLT’s portfolio rejuvenation strategy and will strengthen MLT’s portfolio and competitive positioning in Singapore. It is also expected to be accretive to MLT’s distribution.”
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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.