- Mapletree Logistics Trust (SGX:M44U) reported 2QFY24 DPU of S$0.02268, -0.1% q-o-q and +0.9% y-o-y. 1HFY24 DPU of S$0.04539 was 51.5% of our full-year target.
Continued China headwinds, DPU supported by divestment gains
- - Read this at SGinvestors.io -
- Occupancy and reversions softened mainly due to China. Management remains focused on capital recycling and keeping leverage below 40%.
- We lower our DDM-based target price for Mapletree Logistics Trust to S$1.60 (-11%) after factoring in higher cost of equity but maintain BUY due to focused execution and Mapletree Logistics Trust’s regional network of assets.
Resilient operations marred by FX and China
- - Read this at SGinvestors.io -
- On a constant currency basis, 2QFY24 revenue and NPI would have grown by 6.1% and 5.7% y-o-y respectively.
- Coupled with higher interest expense, distribution from operations fell 1.5% y-o-y. However, this was more than offset by top ups from divestment gains.
- On a q-o-q basis, Mapletree Logistics Trust's 2QFY24 revenue and NPI rose 2.5% and 2.4% respectively. However, higher borrowing cost resulted in a slight fall in DPU by 0.1%. China accounts for ~20% of revenue and its contribution fell 0.1% q-o-q and 12.2% y-o-y in S$.
Stable operating metrics, focus on capital recycling
- Read more at SGinvestors.io.
Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @ https://www.maybanktrade.com.sg/.
Krishna Guha Maybank Research | https://www.maybank-ke.com.sg/ 2023-10-26
Read also Maybank's most recent report:
2024-07-26 Mapletree Logistics Trust - Lower Distribution; BUY As FX Headwinds May Recede.
Previous report by Maybank:
2024-04-30 Mapletree Logistics Trust - Declining Distributions; Rough Patch Continues.
Price targets by 2 other brokers at Mapletree Logistics Trust Target Prices.
Listing of research reports at Mapletree Logistics Trust Analyst Reports.
Relevant links:
Mapletree Logistics Trust Share Price History,
Mapletree Logistics Trust Announcements,
Mapletree Logistics Trust Dividends & Corporate Actions,
Mapletree Logistics Trust News Articles