Mapletree Logistics Trust - CGS-CIMB Research 2022-07-21: Staying Resilient Despite Uncertainties

Mapletree Logistics Trust - Staying Resilient Despite Uncertainties

  • Mapletree Logistics Trust (SGX:M44U) reported a 14.6%/13.2% y-o-y rise in 1QFY23 (Apr 2022 to Jun 2022) gross revenue/NPI to S$187.7m/S$163.2m, due to higher revenue from existing properties and contributions from accretive acquisitions. NPI margin fell y-o-y but improved to 87% due to lower property tax and repair and maintenance expense. 1Q distributable income came in at S$108.6m, +17.2% y-o-y, translating to a DPU of S$0.0227 (+5% y-o-y).
  • As at end-1Q, Mapletree Logistics Trust has hedged 80% of its debt into fixed rates and hedged 73% of its distributable income in the next 12 months. In terms of sensitivity, every 25bp hike in interest rates would translate to a 0.01 cents shift in DPU.
  • Mapletree Logistics Trust’s portfolio occupancy dipped slightly q-o-q to 96.8% as at end-1Q. There was stronger positive rental reversion of 3.4% in 1Q (vs +2.9% in 4Q). About 24.2% of its rental income is up for renewal in 9MFY23F.
  • Management remains cautiously optimistic on reversions as leasing sentiment in China improved towards the end of 2QCY22, particularly in Tier-1 cities, albeit amid moderate take-up as tenants remain cautious about capacity expansion.
  • Mapletree Logistics Trust continues to explore inorganic growth and sees opportunities in Australia, Japan and South Korea. Its gearing stood at 37.2% as at end-1Q, translating to a potential debt headroom of S$700m (based on a 50% guideline ceiling) and it plans to recycle S$300m worth of assets in Singapore, South Korea and Malaysia. That said, with a slightly higher cost of capital amid a rising interest rate environment, it is more selective on new acquisitions.
  • Following its results, we leave our FY23-25F DPU estimates for Mapletree Logistics Trust unchanged but tweak our DDM-based target price for Mapletree Logistics Trust down to S$2.05 on the back of a slightly higher cost of equity of 7.64% (vs. 7.61% previously). Our current forecasts have not baked in any pre-emptive new acquisitions or divestments as guided by management.

Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @

LOCK Mun Yee CGS-CIMB Research | 2022-07-21
SGX Stock Analyst Report ADD MAINTAIN ADD 2.05 DOWN 2.100

Previous report by CGS-CIMB:
2022-04-28 Mapletree Logistics Trust - A Resilient Performance

Target prices by 3 other brokers at Mapletree Logistics Trust Target Prices.
Listing of broker reports at Mapletree Logistics Trust Analyst Report.

Relevant links:
Mapletree Logistics Trust Share Price History,
Mapletree Logistics Trust Announcements,
Mapletree Logistics Trust Dividends & Corp Actions,
Mapletree Logistics Trust News Articles


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