On 1st May 2023, Mapletree Logistics Trust delivered their 4Q FY22/23 financial results. The quarter ended 31 March 2023 (“4Q FY22/23”) started with 186 properties and ended with 185 properties.
As you can see below, Mapletree Logistics Trust has assets in many countries under their management. The assets are geographically diversified but it also means it is highly exposed to foreign exchange risks.
Currently, Mapletree Logistics Trust makes up 3.71% of my stock portfolio. Without further ado, let us take a look at its latest quarter financial results and full year performance.
Mapletree Logistics Trust 4Q FY22/23 Financial Results
In 4Q FY22/23, gross revenue declined by 2.2%. This was due to the depreciation of RMB, JPY, KRW and AUD against SGD.
Contributions from the acquisitions in China, South Korea, Vietnam and Malaysia completed in 1Q FY22/23 and 4Q FY21/22 helped to mitigate the decline.
At the distribution level, the impact of weakening currencies is partially mitigated through the use of foreign currency forward contracts to hedge the income from overseas assets.
Property expenses decreased mainly due to depreciation of RMB, JPY and KRW against SGD. These were offset by higher expenses from acquisitions completed in 1Q FY22/23 and 4Q FY21/22.
The amount distributable to Unitholders was S$109.2 million, 1.1% higher year-on-year. However, the Distribution Per Unit (DPU) remained flat due to exchange rates.
The DPU would have increased by 3.3% or 0.075 cents in 4Q FY22/23 on a like-for-like basis based on 4Q FY21/22 exchange rates.
| 4Q FY22/23 (S$’000) | 4Q FY21/22 (S$’000) | Change | |
| Gross Revenue | 178,901 | 182,871 | (2.2)% |
| Net Property Income | 154,345 | 157,096 | (1.8)% |
| Property expenses | (24,556) | (25,775) | (4.7)% |
| Amount Distributable To Unitholders | 109,234 | 108,010 | 1.1% |
| Distribution Per Unit (“DPU”) (cents) | 2.268 | 2.268 | – |
Mapletree Logistics Trust Full Year FY22/23 Financial Results
Now, let us take a look at Mapletree Logistics Trust’s full year financial results.
In FY22/23, Mapletree Logistics Trust’s Gross Revenue increase by 7.7% due to higher revenue from existing properties and contributions from accretive acquisitions completed in 1Q FY22/23 and FY21/22.
Similar to the fourth quarter results, the increase in gross revenue was moderated by the depreciation of JPY, RMB, KRW and AUD against SGD.
Property expenses increased mainly due to acquisitions completed in 1Q FY22/23 and FY21/22.
Based on a full year, the Distribution Per Unit (DPU) increased by 2.5% to 9.011 cents. The DPU would have increased by 4.6% or 0.400 cents in FY22/23 on a like-for-like basis based on FY21/22 exchange rates.
About 77% of amount distributable in the next 12 months is hedged into or derived in SGD.
| FY22/23 (S$’000) | FY21/22 (S$’000) | Change | |
| Gross Revenue | 730,646 | 678,550 | 7.7% |
| Net Property Income | 634,783 | 592,138 | 7.2% |
| Property expenses | (95,863) | (86,412) | 10.9% |
| Amount Distributable To Unitholders | 432,929 | 390,727 | 10.8% |
| Distribution Per Unit (“DPU”) (cents) | 9.011 | 8.787 | 2.5% |
Debt
As of 31st March 2023, the gearing ratio stood at 36.8%. Debt maturity profile remains well-staggered with an average debt duration of 3.8 years.
There is also sufficient available committed credit facilities of S$1,161 million to refinance S$374 million (or 8% of total debt) debt due in FY23/24.
84% of total debt is hedged or drawn in fixed rates. Every potential 25 bps increase in base rates may result in estimated S$0.49m decrease in distributable income or -0.01 cents in DPU2 per quarter.
Occupancy
As of 31st March 2023, overall portfolio occupancy stood healthy at 97.0%.
Higher occupancy rates in Singapore, Japan and China (Tianjin, Zhengzhou, Jinan and Harbin), partially offset by lower occupancy rates in Hong Kong SAR and South Korea.
Malaysia, Vietnam, Australia and India have maintained near to full or 100% occupancy rates.
Lease expiry profile is well staggered with weighted average lease expiry (by Net Lettable Area) at 3.1 years.
Current Dividend Yield
Should I increase my stake in Mapletree Logistics Trust? Let us take a look at its current dividend yield.
Based on the current share price of S$1.73 and FY22/23 full year distribution of 9.011 cents, this translate to a current dividend yield of 5.21%.
The current dividend yield is pretty acceptable to me. Investors can accumulate at the current price or lower.
Summary of Mapletree Logistics Trust 4Q FY22/23 Financial Results
Let me summarize the pros and cons of Mapletree Logistics Trust 4Q FY22/23 financial results for you.
Pros
- Based on a full year, Gross Revenue and Net Property Income (NPI) increase by 7.7% and 7.2% respectively.
- In FY22/23, the Distribution Per Unit (DPU) increased by 2.5% to 9.011 cents. Though not much but still considered as growth.
- The manager know of its exposure to foreign exchange risks. Thus, about 77% of amount distributable in the next 12 months is hedged into or derived in SGD to mitigate the foreign exchange risks on its distributable income.
- Acceptable gearing ratio of 36.8%.
- 84% of total debt is hedged or drawn in fixed rates. Any increase in interest rates by the Fed should cause minimal impact to its distribution.
- Overall portfolio occupancy stood healthy at 97.0%.
- Lease expiry profile is well staggered.
- Acceptable current dividend yield of 5.21%.
Cons
- Gross revenue and distribution continue to be impacted by depreciation of currencies against SGD.
- Occupancy in China assets still lower than other countries at 93.0%.