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Mapletree Logistics Trust’s Latest Results: Net Property Income Jumps 26%

Earlier this week, Mapletree Logistics Trust (SGX: M44U), or MLT, released its financial results for the third quarter ended 31 December 2018 (3Q FY18/19). As a quick introduction, MLT is a real estate investment trust (REIT) that owns 140 logistics properties around Asia and Australia.

Here are 10 things investors should know about MLT’s latest results:

1. Gross revenue for the reporting quarter grew 23.0% to S$120.8 million while net property income jumped 25.9% to S$104.5 million.

2. Similarly, the REIT’s distribution per unit (DPU) was up by 5.0% year-on-year to 2.002 cents.

3. Based on MLT’s annualised DPU of 7.89 Singapore cents and its closing unit price of S$1.34 (as of the time of writing), the REIT has a trailing distribution yield of 5.9%.

4. As of 31 December 2018, the REIT’s gearing stood at 38.8%, which is a safe distance from the regulatory ceiling of 45%.

5. The REIT’s portfolio had an occupancy rate of 97.7% at end of the quarter.

6. The weighted average lease expiry (by net lettable area) was at 3.8 years as of 31 December 2018. 69.3% of the leases will expire within the next four years while the rest will expire after that.

7. MLT’s portfolio achieved an average rental reversion of 4.5% for the quarter, mainly from Hong Kong, China, Singapore and Vietnam.

8. Single-User Asset and Multi-Tenanted Buildings accounted for 39.5% and 60.5%, respectively, of MLT’s revenue as at 31 December 2018.

9. MLT completed the divestment of its property at 531 Bukit Batok Street 23 in Singapore. Also, it announced the acquisitions of three quality logistics facilities in Australia, South Korea and Vietnam.

10. Here are the comments from the REIT on its outlook:

“The global economic outlook has weakened in recent months amidst tightening financial conditions and continuing trade tensions between the United States and China. Against this backdrop, leasing demand for MLT’s logistics facilities has held steady to date, supporting stable rental and occupancy rates.

The Manager remains vigilant of the evolving environment and maintains its focus on enhancing portfolio resilience. Where appropriate, the Manager will pursue acquisitions, asset enhancements or divestments to enhance portfolio quality and competitiveness. In addition, the Manager proactively manages the financing risks from interest rate and foreign exchange volatility. About 85% of MLT’s total debt has been hedged into fixed rates, while approximately 88% of income stream for FY18/19 has been hedged.”

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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.