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3 Things Mapletree Logistics Trust’s Management Wants You to Know About Its Business

Mapletree Logistics Trust (SGX: M44U), or MLT, is a real estate investment trust (REIT) that owns 141 logistics properties around Asia and Australia. The Manager of MLT had given a presentation on the REIT’s latest results. In the presentation deck, I saw three slides on the REIT’s business that I think investors should pay attention to.

Summary of results

Source: Mapletree Logistic Trust Results Presentation

The above is a summary of MLT’s latest earnings update.

Overall, we can see that all metrics came in ahead of the same period last year. The stronger performance was mainly driven by growth from the existing portfolio, as well as contributions from its latest acquisitions.

As of 31 March 2019, the REIT’s gearing stood at 36.2% whilst its committed occupancy rate was 98.0%.

Breakdown of occupancy rate

Source: Mapletree Logistic Trust Results Presentation

The above is a quick summary of MLT’s occupancy rate by geography.

Overall, we can see that occupancy rate for MLT’s portfolio improved slightly quarter-on-quarter, up from 97.7% to 98.0%.  This was mainly due to higher occupancies in Singapore, Hong Kong and South Korea.

Lease expiry profile

 Source: Mapletree Logistic Trust Results Presentation

Here, there are two points worth mentioning about the REIT’s lease expiry profile.

Firstly, MLT’s portfolio weighted average lease to expiry was 3.8 years by net lettable area, as of 31 March 2019. Secondly, due to the staggered nature its lease expiry profile, MLT has the flexibility to renew its leases over a number of years. Moreover, with 40.8 % of its leases to expire only after FY22/23, MLT will have good visibility of its earnings for the next three to five years.

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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. Motley Fool Singapore has recommended the shares of Mapletree Logistics Trust.