Mapletree Logistics Trust

Mapletree Logistics Trust 2Q FY22/23 Financial Results

Mapletree Logistics Trust 2Q FY22 23 Key Highlights

Today, Mapletree Logistics Trust announced their 2Q FY22/23 financial results. As you can see above, the financial results are pretty decent.

The manager has been adopting the strategy of acquisitions to grow its Gross Revenue, Net Property Income and Distribution Per Unit (DPU). The manager started 2Q FY22/23 with 185 properties and ended with 186 properties!

The downside for Mapletree Logistics Trust is that it has been impacted by the weakening of Japanese Yen and Korean Won against the Singapore Dollar which impacted the Distribution Per Unit (DPU) because DPU is paid out in Singapore Dollar.

Mapletree Logistics Trust 2Q FY22/23 Financial Results

In 2Q FY22/23, Gross Revenue grew 11.4% to S$183.9 million. Similarly,
Net Property Income (NPI) saw a 10.8% rise to S$160.0 million.

The growth was driven by higher revenue from existing properties and contributions from accretive acquisitions completed in 1Q FY22/23 and
FY21/22.

2Q FY22/23 started with 185 properties and ended with 186 properties. 2Q FY21/22 started and ended with 163 properties.

Distribution per Unit (“DPU”) grew 3.5% to 2.248 cents on an enlarged unit base. If not for the depreciation of foreign currencies including Japanese Yen and Korean Won against the Singapore Dollar, Distribution Per Unit (DPU) would have increased by 5.7% or 0.123 cents in 2Q FY22/23.

2Q FY22/23
(S$’000)
2Q FY21/22
(S$’000)
Change
Gross Revenue 183,868 165,073 11.4%
Net Property Income 160,006 144,449 10.8%
Property expenses
(23,862) (20,624) 15.7%
Amount Distributable To Unitholders 107,974 93,367 15.6%
Distribution Per Unit (“DPU”) (cents) 2.248 2.173 3.5%

Mapletree Logistics Trust 1H FY22/23 Financial Results

If you look at the 1H FY22/23 financial results, Gross Revenue grew 13.0% to S$371.5 million. Net Property Income grew 12.0% to S$323.2 million.

Distribution Per Unit grew 4.2% to 4.516 cents.

1H FY22/23
(S$’000)
1H FY21/22
(S$’000)
Change
Gross Revenue 371,542 328,804 13.0%
Net Property Income 323,244 288,599 12.0%
Property expenses
(48,298) (40,205) 20.1%
Amount Distributable To Unitholders 216,583 186,060 16.4%
Distribution Per Unit (“DPU”) (cents) 4.516 4.334 4.2%

Debt

Gearing ratio stood at 37.0% with 82% of its borrowings hedged at fixed rates.

Debt maturity profile also remains well-staggered with an average debt duration of 3.6 years.

As you can see below, 7% of total debt is due in FY22/23. However, the manager shared that they have sufficient available committed credit facilities of S$923 million to refinance S$362 million.

Occupancy

Overall portfolio occupancy stood at 96.4%. The lower occupancy rates in Singapore, Japan and China partially offset by higher occupancy rates in South Korea and Malaysia.

In their presentation slides, the manager explained that Singapore’s lower occupancy was mainly due to the conversion of several single-user assets (“SUAs”) to multi-tenanted buildings (“MTBs”), resulting in transitory downtime at these properties. Vacant spaces are progressively being backfilled.

Lease expiry profile remains well-staggered with weighted average lease expiry (by NLA) at 3.3 years.

Current Dividend Yield

Based on today’s closing price of S$1.46 and FY21/22 full year DPU of 8.626 cents, this translate to a current dividend yield of 5.90%.

Summary of Mapletree Logistics Trust 2Q FY22/23 Financial Results

The manager shared that the overall leasing demand in Mapletree Logistics Trust’s markets has remained resilient, supporting stable occupancy and rental rates.

As shared above, the higher interest rates and depreciation in regional currencies against SGD has impacted Mapletree Logistics Trust’s distributable income. This will continue to impact Mapletree Logistics Trust’s financial performance given continued interest rate hikes and SGD strength.

Thus, I foresee further downtrend in Mapletree Logistic Trust’s share price.

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