Mapletree Logistics Trust FY23 24 Financial Results

Mapletree Logistics Trust FY23/24 Financial Results

On 29th April 2024, Mapletree Logistics Trust released their FY23/24 financial results. Currently, Mapletree Logistics Trust makes up 4.47% of my stock portfolio in terms of value. A Distribution Per Unit (DPU) of 2.211 cents was announced for 4Q FY23/24. With the final dividend being announced, what is Mapletree Logistics Trust’s dividend yield?

As of 31 March 2024, Mapletree Logistics Trust owned 187 properties with an aggregate portfolio property valuation of S$13.2 billion, an increase of S$0.4 billion or 3.2% year-on-year. In FY23/24, Mapletree Logistics Trust acquired a total of nine properties. It also divested seven properties during
the year at a currency translation loss of S$470.9 million and S$1.8 million net fair value loss on
investment properties. The net fair value loss was largely attributed to properties in Australia and
China.

How did Mapletree Logistics Trust perform in FY23/24? Let us dive deeper into its financial results below.

Mapletree Logistics Trust 4Q FY23/24 Financial Results

In Q4 FY23/24, Mapletree Logistics Trust’s Gross revenue and net property income (“NPI”) increased by 1.2% and 0.6% year-on-year to S$181.0 million and S$155.3 million respectively. The growth was driven by higher contribution from existing properties, as well as contributions from the acquisitions.

The gain was partly offset by weaker performance in China and the absence of revenue from divested properties. Due to the diversity of Mapletree Logistics Trust’s asset in multiple countries, the depreciation of various currencies against the Singapore Dollar, primarily Japanese Yen, Chinese Yuan, Malaysian Ringgit and South Korean Won, continued to weigh on growth.

Borrowing costs increased 6.9% year-on-year due to higher average interest rate and incremental borrowings to fund FY23/24 acquisitions.

Including S$12.0 million of divestment gain, the amount distributable to Unitholders increased 1.1% year-on-year to S$110.4 million. Despite the gain, distribution per Unit (“DPU”) decreased 2.5% to 2.211 cents largely due to the higher borrowing costs under the high interest rates environment.

4Q FY23/24
(S$’000)
4Q FY22/23
(S$’000)
Change
Gross Revenue 180,981 178,901 1.2%
Property Expenses
(25,668) (24,556) 4.5%
Net Property Income 155,313 154,345 0.6%
Borrowing Costs (37,217) (34,824) 6.9%
Amount Distributable 116,472 114,560 1.7%
Distribution Per Unit (“DPU”) (cents) 2.211 2.268 (2.5%)

Mapletree Logistics Trust FY23/24 Full Year Financial Results

Based on Mapletree Logistics Trust’s full year results, Gross Revenue grew 0.4% year-on-year to S$733.9 million, while Net Property Income (“NPI’) was S$634.9 million.

The amount distributable to Unitholders rose 3.3% to S$447.1 million. However, due to higher borrowing costs, the full year Distribution Per Unit (“DPU”) was 0.1% lower at 9.003 cents.

FY23/24
(S$’000)
FY22/23
(S$’000)
Change
Gross Revenue 733,889 730,646 0.4%
Property Expenses
(98,945) (95,863) 3.2%
Net Property Income 634,944 634,783 0.0%
Borrowing Costs (145,905) (134,065) 8.8%
Amount Distributable 471,489 454,430 3.8%
Distribution Per Unit (“DPU”) (cents) 9.003 9.011 (0.1%)

Debt

Mapletree Logistics Trust FY23 24 Debt Maturity Profile

As of 31st March 2024, Mapletree Logistics Trust’s aggregate leverage stood at 38.9%. Average debt duration stood at 3.8 years and it also had available committed credit facilities of about S$950 million to meet its financial obligations in the coming financial year.

To mitigate the impact of rising interest rates and currency volatility on Mapletree Logistics Trust’s distributions, approximately 84% of total debt has been hedged into fixed rates.

Occupancy

Mapletree Logistics Trust FY23 24 Financial Results

Mapletree Logistics Trust’s portfolio occupancy stood healthy at 96.0%. The portfolio achieved positive rental reversions across the markets ranging from 2.6% in South Korea to 11.1% in Singapore, except for China which registered negative rental reversion of -10.0%.

Lease Expiry

Mapletree Logistics Trust FY23 24 Lease Expiry

Weighted average lease expiry for the portfolio stood at approximately 3.0 years. As you can see from the chart above, lease expiry is well staggered.

Mapletree Logistics Trust Share Price and Dividend Yield

Mapletree Logistics Trust Share Price 24-May-2024

Mapletree Logistics Trust share price closed at S$1.37 on Friday, 24th May 2024. Based on the full year distribution of 9.003 cents, Mapletree Logistics Trust dividend yield is 6.57%.

Summary of Mapletree Logistics Trust FY23/24 Financial Results

We have came to the end of this post and let me summarize the pro and cons based on its financial results.

The pros are

  • Based on the full year results, Gross Revenue grew 0.4% year-on-year to S$733.9 million.
  • Aggregate leverage stood at 38.9% which is below my threshold of 40%.
  • 84% of total debt has been hedged into fixed rates.
  • Overall portfolio occupancy remained healthy at 96.0%.
  • Positive rental reversions across the markets ranging from 2.6% in South Korea to 11.1% in Singapore.
  • Well staggered lease expiry profile.
  • Attractive current dividend yield of 6.57%.

The cons are:

  • Borrowing costs increased 8.8% year-on-year under the high interest rates environment.
  • Full year Distribution Per Unit (“DPU”) was 0.1% lower at 9.003 cents.
  • China registered negative rental reversion of -10.0%.

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