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$’000) | YoY(%) | |
| Gross Revenue | 128,068 | 121,385 | 5.5% |
| Net Property Income | 114,735 | 104,991 | 9.3% |
| Distributable Amount (To Perpetual Securities Holders) | 4,244 | 4,196 | 1.1% |
| Distributable Amount (To Unitholders) | 77,836 | 73,317 | 6.2% |
| Distribution Per Unit (“DPU”) (cents) | 2.048 | 2.024 | 1.2% |
FY19/20 Full Year Financial Results
Gross revenue for the full financial year grew 8.0% and Net Property Income (“NPI”) grew by 12.6%. Distribution Per Unit (“DPU”) grew by 2.5% to 8.142 cents.
| FY19/20 (S$’000) | FY18/19 (S$’000) | YoY(%) | |
| Gross Revenue | 490,777 | 454,263 | 8.0% |
| Net Property Income | 438,544 | 389,466 | 12.6% |
| Distributable Amount (To Perpetual Securities Holders) | 17,067 | 17,020 | 0.3% |
| Distributable Amount (To Unitholders) | 301,706 | 270,028 | 11.7% |
| Distribution Per Unit (“DPU”) (cents) | 8.142 | 7.941 | 2.5% |
Occupancy
Portfolio occupancy improved to 98.0% from 97.7% in 3Q FY19/20.
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.
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%.
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.