10 Things Investors Should Know About Mapletree Logistics Trust’s Latest Earnings
Mapletree Logistics Trust (SGX: M44U) – which owns 124 logistics assets in Singapore and seven other countries – saw its second quarter distribution per unit grow 1.5% year-on-year to 1.887 cents. The reporting quarter ran from 1 July 2017 to 30 September 2017.
Here are nine other things to note from the latest earnings release:
1. Gross revenue went up 2.3% year-on-year to S$93.7 million. Revenue growth was mainly due to increased revenue from existing properties in Hong Kong and China, contributions from acquisitions and higher translated revenue from a stronger Australian Dollar.
2. Net property income rose 2.5% to S$78.7 million.
3. The amount available for distribution grew 3.5% to S$48.2 million.
4. Net asset value per unit was at S$1.03, as of 30 September 2017. This is a growth from S$1.02 seen at the end of June 2017.
5. As of 30 September 2017, the aggregate leverage ratio stood at 33.7%, down from 39%, as of 30 June 2017.
6. Around 91% of total debt is hedged or drawn at fixed rates, helping to mitigate the rise in interest rates in the future.
7. The portfolio occupancy improved from 95.5% in the first quarter to 95.8% in the latest quarter. The growth was due to higher occupancies from properties in Singapore, Australia, South Korea, China and Vietnam.
8. Leases renewed during the quarter saw their rental rates go up on average by 1.4% as compared to the preceding rental rates. The rise was mostly due rental increases in Hong Kong and China properties.
9. Going forward, REIT’s manager is looking to sustain high occupancy rates by actively managing leases due for renewal. For the remainder of the financial year, a balance of 9.4% of leases (by net lettable area) are due for renewal.
Mapletree Logistics Trust’s units are going at S$1.27 now. This gives a price-to-book ratio of 1.23 and a trailing distribution yield of 5.9%.