Mapletree Logistics Trust

Mapletree Logistics Trust 4QFY21/22 Financial Results

Mapletree Logistics Trust 4QFY21 Summary

On 28th April 2022, Mapletree Logistics Trust has announced their 4QFY21/22 financial results. This also made up their 12M FY21/22 financial results.

Few months ago, I nibbled on Mapletree Logistics Trust without making a big one time position. This is part of my investment strategy. Based on the 6-months trend of the share price, the chart pattern is on the downtrend. The REIT currently makes up 2.45% of my stock portfolio.

Logistics REITs have performed extremely well during the COVID-19 pandemic (year 2020) while the other category of REITs in other sectors fell. Now that the most countries have adapted to the COVID-19 pandemic and international borders have started to open up, how will this REIT fare? Let us find out.

Mapletree Logistics Trust 4QFY21/22 Financial Results

The financial results for 4QFY21/22 was robust. Gross revenue increased 16.5% y-o-y to S$183 million. The revenue growth was due to full quarter contribution from acquisitions completed in 3Q FY21/22 and lower rental rebates was granted to eligible tenants impacted by COVID-19.

Just for illustration purposes, 4Q FY21/22 started with 167 properties and ended with 183 properties.

Property expenses was higher due to higher property tax, repair and maintenance. More properties means more and higher property expenses.

DPU also increased 8.7% year-on-year to 2.230 cents.

4QFY21/22
(S$’000)
4Q FY20/21
(S$’000)
Change
Gross Revenue 182,871 157,024 16.5%
Net Property Income 157,096 136,677 14.9%
Property expenses
(25,775) (20,347) 26.7%
Amount Distributable To Unitholders 106,211 87,855 20.9%
Distribution Per Unit (“DPU”) (cents) 2.230 2.051 8.7%

Mapletree Logistics Trust Full Year FY21/22 Financial Results

Gross revenue for the full year increased 20.9% to S$679 million.

DPU also increased 9.9% year-on-year to 8.626 cents.

Overall full year financial results was fantastic!

FY21/22
(S$’000)
FY20/21
(S$’000)
Change
Gross Revenue 678,550 561,140 20.9%
Net Property Income 592,138 499,112 18.6%
Property expenses
(86,412) (62,028) 39.3%
Amount Distributable To Unitholders 383,531 314,227 22.1%
Distribution Per Unit (“DPU”) (cents) 8.626 7.852 9.9%

Occupancy

Overall portfolio occupancy stood at 96.7%. As you can see below, occupancy was higher in India and Japan while occupancy was lower in China, Singapore and South Korea.

Lease Expiry

Weighted Average Lease Expiry (WALE) (by NLA) stood at 3.5 years. As you can see below, the lease expiry are well staggered. We need to monitor the lease renewal in FY22/23 because 29.9% are expiring.

Debt

Aggregate leverage stood healthy at 36.8%.

79% of the debts are hedge at fixed rates which is important at times of turbulence. The current war between Russia and Ukraine can rock worldwide borrowing interest rates.

According to the presentation slides, Mapletree Logistics Trust has sufficient available committed credit facilities of S$921m to refinance S$534m (or 11% of total debt) debt due in FY22/23.

Debt maturity profile remains well-staggered with an average debt duration of 3.8 years.

Current Dividend Yield

Based on the current share price of S$1.79 and FY21/22 dividend yield of 8.626 cents, this translate to a current dividend yield of 4.82%.

Summary of Mapletree Logistics Trust 4QFY21/22 Financial Results

Mapletree Logistics Trust has released a decent set of results. Similar to my previous analogy, investors just are not supportive of the acquisition frenzy that this REIT embarks on. Similarly, this is also one of the reasons that is holding me back from making a major position in this trust. I wonder how the manager is able to manage such a large portfolio of assets.

At current dividend yield of 4.82%, we can wait for share price to trend lower before making our entry.

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