Mapletree Logistics Trust 1QFY20/21 Financial Results

Warehouse

Mapletree Logistics Trust has announced their 1QFY20/21 financial results on 20th July 2020. Again, the manager has produced a set of stellar financial results despite the world is still in the COVID-19 pandemic. However, the manager has cautioned that a prolonged COVID-19 situation and economic downturn may negatively impact demand for warehouse space. In the short term, this Trust is still performing very well.

In 1QFY20/21, Mapletree Logistics Trust’s gross revenue rose 10.5% to S$132.4m and Net Property Income (“NPI”) grew 12.0% to S$118.8m. Distribution Per Unit (“DPU”) grew 1.2% to 2.045 cents.

1QFY20/21 Financial Results

1QFY20/21
(S$’000)
1QFY19/20
(S$’000)
YoY(%)
Gross Revenue132,371119,81110.5%
Net Property Income118,838106,12812.0%
Distributable Amount (To Perpetual Securities Holders)4,2434,243
Distributable Amount (To Unitholders)77,80473,6025.7%
Distribution Per Unit (“DPU”) (cents)2.0452.0251.0%

Occupancy

Occupancy stood healthy at 97.2%, reflecting lower occupancies in China and South Korea, which were partly offset by improved occupancy in Singapore.

Mapletree Logistics Trust Occupancy (30 Jun 2020)

Debt

As of 30th June 2020, the gearing ratio stood at 39.6%.This is an increase of 0.3% as compared to the gearing ratio of 39.3% on 31st March 2020.

The total debt outstanding increased by S$62m which the manager stated that it was mainly for working capital purpose, including setting aside more operating cash in the various countries for financial flexibility.

Moody’s credit rating remains unchanged at Baa2 with stable outlook.

Mapletree Logistics Trust Debt Maturity (30 Jun 2020)

Debt maturity profile remains well staggered with an average debt duration of 4.0 years. The manager has claimed that they have sufficient available committed credit facilities to refinance debt due in FY20/21 and FY21/22.

Current Dividend Yield

Based on the full year DPU payout of 8.142 cents and current share price of S$2.03, this translate to a current dividend yield of 4.01%. If you managed to catch Mapletree Logistics Trust during March stock market crash where it reaches the low of S$1.24, the dividend yield will be 6.57%.

Mapletree Logistics Trust Share Price on 21 July 2020

Summary

Mapletree Logistics Trust has proposed the acquisition of Grade A logistics facility in Brisbane, Australia for A$21.3m (S$20.2m). I am surprised by the acquisition under the COVID-19 situation because most managers tends to be more conservative at the moment but not for Mapletree Logistics Trust.

As of 30th June 2020, Mapletree Logistics Trust has a total of 145 properties under its portfolio. What worries me is the proactive management of such a large portfolio of assets by the manager. The more assets, the more higher difficulty in managing them.

Mapletree Logistics Trust Asset Breakdown (30 Jun 2020)

As you can see from the asset under management and gross revenue breakdown, Mapletree Logistics Trust top 3 core markets are Hong Kong SAR, Japan and Singapore. Tenants in retail, hospitality and travel account for estimated 10% of Mapletree Logistics Trust revenue.

Any disruptions in these 3 markets will have an impact to Mapletree Logistics Trust.

Nevertheless, Mapletree Logistics Trust has a proven track record of producing a good set of financial results and I regretted for missing the boat when it crashed to S$1.24 during the COVID-19 pandemic.

I shall keep this in my watchlist and enter a position should opportunity allows.

Mapletree Logistics Trust 4QFY19/20 Financial Results – Resilient to COVID-19

Mapletree Logistics Trust 4QFY19/20 Financial Results - Resilient to COVID-19

Mapletree Logistics Trust had released their 4QFY19/20 financial results on 23rd April 2020. I was surprised by the excellent financial results that Mapletree Logistics Trust had released and the best thing for unitholders is that the manager is not holding back any capital distribution due to COVID-19.

Gross Revenue for 4QFY19/20 grew 5.5% to S$128.1 million and Net Property Income (“NPI”) grew 9.3% to S$114.7 million. Distribution Per Unit (“DPU”) grew 1.2% to 2.048 cents.

Based on the 4QFY19/20 financial results, I observed that while most retail REITs are impacted by the COVID-19 situation, industrial REITs such as Mapletree Logistics Trust are less vulnerable to COVID-19. Or perhaps the impact has not yet hit industrial REITs?

Nevertheless, below are the impressive results from Mapletree Logistics Trust.

4QFY19/20 Financial Results

4QFY19/20
(S$’000)
4QFY18/19
(S$’000)
YoY(%)
Gross Revenue128,068121,3855.5%
Net Property Income114,735104,9919.3%
Distributable Amount (To Perpetual Securities Holders)4,2444,1961.1%
Distributable Amount (To Unitholders)77,83673,3176.2%
Distribution Per Unit (“DPU”) (cents)2.0482.0241.2%

FY19/20 Full Year Financial Results

Gross revenue for the full financial year grew 8.0% and Net Property Income (“NPI”) grew by 12.6%. Distribution Per Unit (“DPU”) grew by 2.5% to 8.142 cents.

FY19/20
(S$’000)
FY18/19
(S$’000)
YoY(%)
Gross Revenue490,777454,2638.0%
Net Property Income438,544389,46612.6%
Distributable Amount (To Perpetual Securities Holders)17,06717,0200.3%
Distributable Amount (To Unitholders)301,706270,02811.7%
Distribution Per Unit (“DPU”) (cents)8.1427.9412.5%

Occupancy

Portfolio occupancy improved to 98.0% from 97.7% in 3Q FY19/20.

Mapletree Logistics Trust 4QFY19/20 Financial Results - Resilient to COVID-19

Debt

As of 31st March 2020, gearing ratio stood at 39.3%. 6% of total debt is due in FY20/21 however the manager shared in their presentation slides that they have sufficient available committed credit facilities of over S$700 million to refinance S$242 million.

Weight debt duration stood at 4.1 years.

Mapletree Logistics Trust 4QFY19/20 Financial Results - Resilient to COVID-19

Current Dividend Yield

Based on the full year DPU payout of 8.142 cents and current share price of S$1.80, this translate to a current dividend yield of 4.52%. If you managed to catch Mapletree Logistics Trust during last month crash where it reaches the low of S$1.24, the dividend yield will be 6.57%.

Mapletree Logistics Trust 4QFY19/20 Financial Results - Resilient to COVID-19

Summary

In the current COVID-19 situation, the good news is that all the tenants across Mapletree Logistics Trust are operational. Mapletree Logistics Trust top 3 core markets are Hong Kong SAR, Japan and Singapore. Tenants in retail, hospitality and travel account for estimated 10% of Mapletree Logistics Trust revenue.

Even though Mapletree Logistics Trust has released a decent set of financial results, the COVID-19 will surely disrupt supply chains and market demand by varying degrees across its geographical markets.

As there are too many attractive stocks to buy during a stock market crash, I missed out on Mapletree Logistics Trust. A dividend yield of 6.57% is very attractive. I probably will not enter into Mapletree Logistics Trust at the current price as the dividend yield is only 4.52% but will definitely look deeper should a market crash happen again in the next few quarters.