Mapletree Industrial Trust 18 Tai Seng

Mapletree Industrial Trust 1QFY22/23 Results

Mapletree Industrial Trust Portfolio Overview 30 June 2022

Today, Mapletree Industrial Trust had released their 1QFY22/23 Financial Results. Distribution Per Unit (DPU) grew 4.2% year-on-year.

The growth was driven by the contribution from the 29 data centres acquired in the United States.

Let us look at the financial results in more details below.

Mapletree Industrial Trust 1QFY22/23 Financial Results

Gross revenue and net property income for 1QFY22/23 increased 31.0% and 24.0% year-on-year to S$167.8 million and S$129.9 million respectively.

As shared earlier, Distribution Per Unit (DPU) grew 4.2% year-on-year to 3.49 cents.

1QFY22/23
(S$’000)
1QFY21/22
(S$’000)
Change
Gross Revenue 167,805 128,059 31.0%
Net Property Income 129,903 104,719 24.0%
Property expenses
(37,902) (23,340) 62.4%
Amount Distributable To Unitholders 92,138 82,696 11.4%
Distribution Per Unit (“DPU”) (cents) 3.49 3.35 4.2%

Occupancy

Average Overall Portfolio occupancy increased quarter-on-quarter from 94.0% to 95.3%.

As you can see from the bar chart below, there is improved occupancies across all property segments in Singapore and North America.

Lease Expiry

Overall portfolio Weighted Average Lease Expiry (WALE) stood at 4.1 years.

Based on the expiring leases by gross rental income, 10.6% of the leases will expire in FY22/23. I believe the manager should have no issue with the lease renewal.

Debt

Gearing ratio stood healthy at 38.4% with Weighted Average Tenor of Debt at 3.7 years.

Debt maturity is well spread across the financial years. The manager shared that 100% of loans are unsecured with minimal covenants.

72.3% of the debt are hedged at fixed rates. This should mitigate against further forex fluctuations.

Current Dividend Yield

As you can see from the graph below, Mapletree Industrial Trust has been able to increase its DPU year-on-year.

Based on 25th July 2022 closing price of S$2.65 and FY21/22 DPU of 13.80 cents, this translate to a current dividend yield of 5.21%.

Summary of Mapletree Industrial Trust 1QFY22/23 Results

In summary

  • Distribution Per Unit (DPU) grew 4.2% year-on-year to 3.49 cents.
  • Gearing ratio stood healthy at 38.4%. 100% of loans are unsecured with minimal covenants.
  • 72.3% of the debt are hedged at fixed rates. Thus there is no significant replacement risks for interest rate hedges expiring in FY22/23.
  • Attractive current dividend yield of 5.21%.
  • Rising energy prices continue to pose a risk of increased property operating expenses amid volatile utility tariffs.
  • Interest expenses are expected to increase in tandem with interest rate hikes as central banks tightened their monetary policies to alleviate inflation pressure.

I shall see how the share price react tomorrow when the market open. Looking to nibble some of Mapletree Industrial Trust!

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