Mapletree Logistics Trust 3QFY23/24 Financial Results

Mapletree Logistics Trust 3QFY23 24 Key Highlights

On 24th January 2024, Mapletree Logistics Trust announced their 3QFY23/24 financial results. At this point of writing, Mapletree Logistics Trust makes up 3.63% in terms of value of my stock portfolio.

Mapletree Logistics Trust has announced a Distribution Per Unit (DPU) of 2.253 cents per unit.

Mapletree Logistics Trust 3QFY23/24 Financial Results

In 3QFY23/24, Gross revenue increased mainly due to the higher contribution from existing properties in Singapore and contribution from acquisitions that were completed in 1Q FY23/24.

The growth was partly offset by lower contribution from China and the absence of revenue from divested properties and property under redevelopment. Depreciation of CNY, JPY, HKD, MYR and AUD against SGD also affected the revenue growth.

With an enlarged portfolio, property expenses such as property taxes and maintenance expenses continue to increase.

Borrowing costs increased due to incremental borrowings to fund FY23/24 acquisitions. Expiring interest rate swaps were replaced at higher rates and higher base rates on unhedged loans. This was partly offset by loan repayments with proceeds from private placement and divestments.

3QFY23/24
(S$’000)
3QFY22/23
(S$’000)
Change
Gross Revenue 184,020 180,203 2.1%
Property Expenses
(24,516) (23,009) 6.5%
Net Property Income 159,504 157,194 1.5%
Borrowing Costs (36,729)  (34,818) 5.5%
Amount Distributable 118,364 112,523 5.2%
Distribution Per Unit (“DPU”) (cents) 2.253 2.227 1.2%

Mapletree Logistics Trust 3QFY23/24 Debt

Mapletree Logistics Trust 3QFY23 24 Debt Maturity Profile

As of 31st December 2023, Mapletree Logistics Trust’s aggregate leverage stood at 38.8%. This is slightly below my acceptable ratio of 40%.

Total debt outstanding decreased by S$63 million quarter-on-quarter mainly due to repayment of loans using net proceeds from the divestment of properties in Malaysia and Singapore, and funds from internal sources including cash retained via Distribution Reinvestment Plan (DRP).

Mapletree Logistics Trust has sufficient available committed credit facilities of S$1,046 million to refinance S$512 million (or 9% of total debt) debt due in this financial year as well as FY24/25.

Debt maturity profile remains well-staggered with an average debt duration of 3.7 years.

Mapletree Logistics Trust 3QFY23/24 Occupancy

Mapletree Logistics Trust 3QFY23 24 Occupancy

Malaysia’s lower occupancy rate is due to successful repossession of vacant space in an asset. This is expected to backfill by 4Q FY23/24. Singapore’s and Hong Kong’s vacancy rates are mainly due to SUA expiries at older specs buildings slated for divestment.

Vietnam, Australia and India maintained occupancy rates at 100%.

Mapletree Logistics Trust achieved 3.8% positive rental reversion for the portfolio. Excluding China, portfolio rental reversion would be +6.2%.

Mapletree Logistics Trust 3QFY23/24 Lease Expiry Profile (by NLA)

Mapletree Logistics Trust 3QFY23 24 Lease Expiry Profile

Lease expiry profile is well-staggered with weighted average lease expiry (by NLA) at 2.9 years.

Mapletree Logistics Trust Current Dividend Yield

Mapletree Logistics Trust Share Price 26 January 2024

Based on Mapletree Logistics Trust’s share price of S$1.56 and FY22/23 full year distribution of 9.011, the current dividend yield is 5.78%.

Financial Year Quarter 1 Quarter 2 Quarter 3 Quarter 4 Full Year
FY22/23 2.268 2.248 2.227 2.268 9.011
FY23/24 2.271 2.268 2.253

If you compare the quarter-on-quarter distribution for each quarter, the full year distribution for FY23/24 is estimated to be likely to be higher than FY22/23.

Summary of Mapletree Logistics Trust 3QFY23/24 Financial Results

If you have no time to read through the full financial results, let me summarize the pros and cons for you.

Pros

  • 3QFY23/24 Gross Revenue increased by 2.1%.
  • Mapletree Logistics Trust’s aggregate leverage stood at 38.8%. This is slightly below my acceptable ratio of 40%.
  • Sufficient available committed credit facilities of S$1,046 million to refinance S$512 million due in FY22/23 and FY23/24.
  • Mapletree Logistics Trust achieved 3.8% positive rental reversion for the portfolio.
  • Recent decline in share price resulted in attractive current dividend yield of 5.8%

Cons

  • Borrowing costs increased
  • Overall portfolio occupancy fell to 95.9%.

In my opinion, the decline in share price is an opportunity if you wish to get into this REIT. As usual investors are worried about the high interest rates (borrowing costs) that will erode the distributable income.

Mapletree Logistics Trust’s Share Price Has Dipped 15% in a Year: Is it Poised for a Reversal?

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