My Personal Analysis of Mapletree Logistics Trust

Mapletree Logistics Trust

I am starting off year 2022 with my Personal Analysis of Mapletree Logistics Trust (SGX:M44U). Mapletree Logistics Trust (“MLT”) was listed on the Singapore Exchange Securities Trading Limited in 2005.

The Trust is Singapore’s first Asia-focused logistics real estate investment trust which invests in a diversified portfolio of quality, well-located, income producing logistics real estate in Singapore, Hong Kong SAR, Japan, China, Australia, South Korea, Malaysia, Vietnam and India.

Mapletree Logistics Trust Portfolio

As of 30th September 2021, Mapletree Logistics Trust has a total of 163 properties in its portfolio.

In October 2021, Mapletree Logistics Trust completed the acquisition of 9 Changi South Street 2 in Singapore and a logistics property in Japan.

The acquisition did not stop there. In December 2021, the manager announced its proposal to acquire a further 13 properties in China and 3 properties in Vietnam.

Financial Summary

Mapletree Logistics Trust FY20/21 Financial Results

It is noteworthy that Mapletree Logistics Trust started FY20/21 started with 145 properties and ended with 163 properties. In FY19/20, the trust started with 141 properties and ended with 145 properties.

Mapletree Logistics Trust was able to grow its revenue by 14.3% y-o-y. Revenue growth was attributed to accretive acquisitions in FY19/20 and FY20/21.

FY20/21
(S$’000)
FY19/20
(S$’000)
Change
Gross Revenue 561,140 490,777 14.3%
Net Property Income 499,112 438,544 13.8%
Distributable Income (To Unitholders) 333,079 301,706 10.4%
Distribution Per Unit (“DPU”) (cents) 8.326 8.142 2.3%

In terms of revenue contribution by geography, we can see that Singapore, Japan and Australia are the top 3 revenue contributors.

Mapletree Logistics Trust Revenue Contribution By Geography FY21

Occupancy Rates

Based on the latest 2Q FY21/22 financial results, occupancy stood healthy at 97.8%.

Mapletree Logistics Trust Occupancy 30 Sep 2021

Debt

As of 25 October 2021, gearing stood at 38.2%. Debt maturity profile remains well-staggered with an average debt duration of 3.6 years.

Mapletree Logistics Trust has a credit rating of BBB+ (stable outlook) from Fitch.

Mapletree Logistics Trust Debt 30 Sep 2021

Distribution History

As you can see below, Mapletree Logistics Trust was able to grow its Distribution Per Unit (DPU) y-o-y. Based on the latest closing share price of S$1.82 (7th Jan 2022) and FY20/21 DPU of 8.326 cents, this translate to a current dividend yield of 4.57%.

Mapletree Logistics Trust DPU

I believe you would have read about Mapletree Logistic Trust’s proposed acquisition of 13 properties in China and 3 properties in Vietnam. The Pro Forma DPU is projected to increase 1.1% to 8.415. Based on the closing price of S$1.82, the estimated future dividend yield will be 4.62%.

Current Valuation

The Net Asset Value per unit of Mapletree Logistics Trust is valued at S$1.33. At the closing price of S$1.82, this means that it is currently 36.8% over valued.

From the chart below, I observed that the share price is on the downtrend towards the second half of year 2021. The 1 year lowest price reached was S$1.78 on 9 March 2021.

At current closing price, this poses an opportunity for investors to enter into a position. But investors should take note that there is still a risk that the share price can still go lower.

Mapletree Logistics Trust Share Price 7 Jan 2022

Summary of My Personal Analysis of Mapletree Logistics Trust

Let me summarize the pro and cons from my analysis of Mapletree Logistics Trust.

  • It has a diversified global portfolio and thus it is not dependent on any one market.
  • Large portfolio of 163 properties or more which can be overwhelming to manage.
  • The overall portfolio occupancy stood healthy at 97.8%.
  • Healthy gearing at 38.2% with room for more debt.
  • Recent acquisitions frenzy could increase the leverage to 39.1%.
  • At the closing price of S$1.82, the current dividend yield is attractive at 4.57%.
  • Proven track record to grow DPU year on year.
  • Lacklustre Pro Forma DPU of only 1.1% with the proposed acquisition of China and Vietnam properties.
  • Mapletree Logistics Trust is trading near to 1 year low of S$1.78. Do note share price can go lower.

I hope you enjoy my Personal Analysis of Mapletree Logistics Trust!

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.