Mapletree Logistics Trust - OCBC Investment 2024-05-02: Strong Management Capabilities To Navigate Challenges Ahead

• Mapletree Logistics Trust (SGX:M44U)'s 4QFY24 gross revenue and net property income (NPI) increased 1.2% and 0.6% y-o-y to S$181.0m and S$155.3m, respectively. This was driven by higher contribution from existing properties and acquisitions, but partially offset by divestments, weakness in China and FX headwinds.

4QFY24 results met our expectations.

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• Given an increase in borrowing costs by 6.9% y-o-y and an enlarged unit base, Mapletree Logistics Trust’s 4QFY24 DPU slipped 2.5% y-o-y to 2.211 Singapore cents.
• For Mapletree Logistics Trust’s FY24 results, NPI was flat at S$634.9m, while DPU inched down 0.1% to 9.003 Singapore cents and accounted for 99.3% of our forecast.

Subdued China operations set to persist for next 12 months; offsetting effects from developed markets of Singapore, Hong Kong and Japan

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• Management said that the market’s performance was weaker than expected and flagged continued challenging conditions over the next 12 months or possibly even longer. There continues to be a bifurcation in performance, with Tier 1 cities holding up well in rents (+2.2% rental reversion) but offset by weakness in Tier 2 and below cities (-11% rental reversion).

Expect occupancy to hold but negative reversions

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OCBC Research Team OCBC Investment Research | https://www.iocbc.com/ 2024-05-02 SGinvestors.io

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