Mapletree Logistics Trust

Mapletree Logistics Trust 1QFY22/23 Results

Mapletree Logistics Trust Overview 1QFY22 23

Today, Mapletree Logistics Trust announced their 1QFY22/23 Financial Results. DPU was higher at 5.0% year-on-year to reach 2.268 cents.

Currently, Mapletree Logistics Trust makes up 2.45% of my stock portfolio. In recent months, Mapletree Logistics Trust has been one of the relative underperformers. In the 13th AGM, the manager explained that this is due to “rotational trades” as investors switched from the pandemic-resilient industrial sector to sectors that benefit from the economic reopening, such as offices and hotels.

At this point of writing, the share price closed at S$1.71. This is an increase as compared to this REIT trading at S$1.63 one month ago.

Now, let us take a deeper dive into its 1QFY22/23 Financial Results.

Mapletree Logistics Trust 1QFY22/23 Financial Results

Gross revenue grew 14.6% year-on-year due to higher revenue from existing properties and accretive acquisitions completed in 1Q FY22/23 and FY21/22.

Because of the acquisitions and higher property and land tax, property expenses increased by 24.8%.

DPU also increased 5.0% year-on-year to 2.268 cents.

1QFY22/23
(S$’000)
1QFY21/22
(S$’000)
Change
Gross Revenue 187,674 163,731 14.6%
Net Property Income 163,238 144,150 13.2%
Property expenses
(24,436) (19,581) 24.8%
Amount Distributable To Unitholders 108,609 92,693 17.2%
Distribution Per Unit (“DPU”) (cents) 2.268 2.161 5.0%

Occupancy

Occupancy is stable across its global markets.

Mapletree Logistics Trust Occupancy 30 Jun 2022

Lease Expiry

Weighted Average Lease Expiry (WALE) (by NLA) stood at 3.4 years. Lease expiries are well staggered. We need to monitor the lease renewal in FY22/23 because 24.2% are expiring.

Mapletree Logistics Trust Lease Expiry 30 Jun 2022

Debt

Aggregate leverage stood healthy at 37.2% with average debt maturity standing at 3.7 years.

There is sufficient available committed credit facilities of S$848m to refinance S$460m (or 9% of total debt) debt due in FY22/23.

Mapletree Logistics Trust Debt Maturity 30 Jun 2022

Under the rising interest rate environment, I am glad to know that 80% of the debt are hedged into fixed rates.

Summary of Mapletree Logistics Trust 1QFY22/23 Results

Because of the acquisitions, Mapletree Logistics Trust is able to grow its DPU. This is definitely a joy for dividend investors like me. However, I do note that increasing property expenses may erode away its revenue.

If the share price hovers around S$1.63 to S$1.75 range, I will continue to nibble on Mapletree Logistics Trust given its current dividend yield is estimated around 4.8% to 5.0%.

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