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

Last Friday, Mapletree Logistics Trust (SGX: M44U), or MLT, released its 2018/19 fourth-quarter earnings update. MLT is a real estate investment trust (REIT) that owns 141 logistics properties around Asia and Australia.

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

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  1. Gross revenue for the reporting quarter grew 13.0% to S$121.4 million, while net property income jumped 15.0% to S$105.0 million.
  2. Similarly, the REIT’s distribution per unit (DPU) was up by 4.5% year on year to 2.024 Singapore cents, mainly due to the higher net property income.
  3. Based on MLT’s full-year DPU of 7.941 Singapore cents and its closing unit price of S$1.46 (as of writing), the REIT has a trailing distribution yield of 5.4%.
  4. As of 31 March 2019, the REIT’s gearing stood at 36.2%, which is a safe distance from the regulatory ceiling of 45%.
  5. The REIT’s portfolio had a committed occupancy rate of 98.0% at end of the quarter.
  6. The weighted average lease expiry (by net lettable area) was at 3.8 years as of 31 March 2019. 72.7% of the leases will expire within the next five years, while the rest will expire after 2023/24.
  7. MLT’s portfolio achieved an average rental reversion of 2% for the year ended 31 March 2019.
  8. Single-User Asset and Multi-Tenanted Buildings accounted for 40.3% and 59.7%, respectively, of MLT’s revenue as of 31 March 2019.
  9. MLT completed the divestment of 7 Tai Seng Drive and 531 Bukit Batok Street 23 in Singapore in the 2018-19 financial year. Also, it divested five properties in Japan in April 2019.
  10. Here are the comments from the REIT on its outlook:

“Global economic growth has weakened amidst a slowdown in international trade and manufacturing. This may have a negative impact on demand for warehouse space. Nevertheless, MLT’s diversified portfolio, large tenant base and well-staggered lease expiries provide resilience to the portfolio.

In Singapore, the leasing market remains competitive although it has shown signs of stabilisation as new supply tapers. In Hong Kong, favourable supply-demand dynamics continue to support rental rates and high occupancies. Japan continues to provide stable income streams underpinned by 100% occupancy rates and long leases. China is expected to remain resilient, while certain sub-markets may be more challenging due to a high supply of new warehouse space.”

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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. The Motley Fool Singapore recommends Mapletree Logistics Trust.