- While logistics is a good theme, sluggish recovery in China and competition from new supply make us downgrade Mapletree Logistics Trust (SGX:M44U) to HOLD. We lower estimates but raise Mapletree Logistics Trust's target price to S$1.70, factoring in a lower discount rate.
China headwinds; easing occupancy
- - Read this at SGinvestors.io -
- Organic growth and contributions from newly acquired assets were offset by higher borrowing cost, weaker FX and lower income from its China portfolio.
- - Read this at SGinvestors.io -
- Debt metrics were relatively unchanged.
Steady set of results
- Mapletree Logistics Trust's 3QFY24 revenue and NPI of S$184m and S$159.5m rose 2.1% and 1.5% y-o-y respectively. Organic growth and contributions from assets acquired earlier in the financial year was partly offset by weakness in China and FX depreciation.
- On a constant-currency basis, revenue and NPI was up 4.8% and 4.1% respectively.
- Distribution of gains from divestments more than offset the impact of higher borrowing cost, resulting in 1.2% growth in DPU. On a q-o-q basis, revenue and NPI weakened due to lower contributions from China and a weaker JPY. DPU fell 0.7% q-o-q.
- Mapletree Logistics Trust's gearing (38.8%) and borrowing cost (2.5%) were relatively unchanged from 2Q. Debt cost guide for FY25 is 2.8-3%.
Operating metrics softer
- 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/ 2024-01-25
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