Sunday, January 30, 2022

Mapletree Logistics Trust 3Q FY21/22 Results


Mapletree Logistics Trust (SGX.M44U) announced its 3Q FY21/22 Results on 28 Jan 2021.

Most importantly, dividend per unit (DPU) increases by 5.8% Year-on-Year to 2.185 cents from 2.065 cents in 3Q FY20/21.

Gross revenue and net property income increases 19.3% and 17.4% respectively as compared to 3Q FY20/21.

As advanced distribution of 1.461 cents has been paid on 12 Jan due to private placement, a balance DPU of only 0.724 cents will be paid on 22 Mar.

As of 31 Dec 2021, MLT has a portfolio of 167 properties valued at S$11.5 billion. Portfolio occupancy was decent at 97.8% with WALE of 3.6 years. Portfolio average rental reversion was positive at 2.5%.

On capital management, gearing ratio was healthy at 34.7% with an average debt duration of 3.5 years. However, with the completion of the proposed acquisition of 16 properties in China and Vietnam, its gearing ratio is set to increase to 39.1%. Hence, it is not surprising if another equity fund raising is on the cards sooner than later for the next acquisition.

The logistics sector had remained resilient throughout the pandemic as demand continues to benefit from structural trends such as e-commerce and supply chain diversification.

In terms of outlook, the global economy is expected to recover but curbed by advent of Omicron virus variant and increase in interest rates in some advanced economies.

At share price of $1.69, based on estimated annual dividend of 8.6 cents, MLT yields around 5% which is beginning to look attractive. However, I do believe that its share price will remain weak in the short-term though long-term wise, its fundamentals have not changed and is posited to soar to greater heights while providing long-term investors with a steady and consistent stream of perpetual income.

Thanks for reading. As always, stay safe and remain strong.

With Love & Peace,

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