Thursday 25 January 2024

Mapletree Logistics Trust Financial Results 3QFY23/24 - The Good and The Bad

MLT released its latest quarterly results yesterday.
Did a quick run through and list down the salient points for my own reference as follows.
Higher distributable amount and DPU Y-o-Y.
High portfolio occupancy.
Overall positive rental reversions despite negative reversions from China assets.

Relatively low leverage of 38.8%.
Low average finance cost of 2.5%. Impressive.
>3% interest coverage.
Well spread maturing debt profile. <10% of debt maturing in the next two years.
About 80% of distributable amount for the next 12 months hedged into SGD. Stabilises impact from Forex.
Well diverse geographically in terms of AUM and revenue. No more than 30% from each territory. Low concentration risk.
Diversified tenant base in terms of trade sectors. No one sector contributes more than 20% in terms of total portfolio revenue.
Largest tenant contributes <5% of total portfolio revenue. 

MLT commits to net zero emissions for Scope 1 and 2 by 2030. I always look out for these data since I'm an environmental guy both personally and professionally.
Steady demand for most of MLT's markets except for China.


Higher borrowings Y-o-Y due to higher renewed rates on unhedged loans. And this trend is expected to continue.

Negative rental reversions from China market expected for next few quarters. And China is the 2nd largest market for MLT in terms of revenue and number of properties.
2.253 cents per unit.
To be paid on 20/3/2024.
Distribution reinvestment plan (DRP) will also apply to this round of distribution.
Issue price of each DRP unit will be priced approximately at 1.85% discount to the adjusted VWAP of ten market days leading to the record date of 1/2/2024.
Personal Take
Good set of results with average outlook.
China woes might be alleviated soon since the Chinese government has announced their set of stimulus to boost its economy. Among the measures is the expected injection of one trillion yuan in long-term capital into the market.

Apart from the financial side, this is also adding a dose of confidence and hope into the market which is urgently needed as reflected in the share price of chinese stocks nowadays.

MLT has always been among my favourite counters due to its strong and stable performance since I first bought into it some 6 years ago.
I'm pretty comfortable adding at today's price (1.56) which translates to >5.5% dividend yield. However it would be even better to add closer to 1.44 for bigger margin of safety. This is taking reference from the previous scrip issue price.

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