- Mapletree Logistics Trust plans to expand in growth markets, such as India, Malaysia and Vietnam, but the pace of acquisitions is curtailed by its elevated aggregate leverage of 39.6%. The outlook for China remains challenging and the weakness is expected to persist over the next few quarters. Downgrade to HOLD.
Hampered by strong S$.
- - Read this at SGinvestors.io -
- Gross revenue and NPI decreased by 0.3% and 0.9% y-o-y in 1QFY25 as contributions from overseas logistics properties were curtailed by a strong S$ (JPY: -10% y-o-y and KRW: -4% y-o-y).
- - Read this at SGinvestors.io -
Persistent weakness from China.
- Mapletree Logistics Trust achieved positive rental reversion of 2.6% in 1QFY25 (Singapore: 7.8%, Hong Kong: 2.1% and China: -11.3%). Excluding China, which accounted for half of lease expiry in 1QFY25, positive rental reversion would be 4.6%.
- Portfolio occupancy eased marginally by 0.3ppt q-o-q to 95.7% as of Jun 24. Occupancies for Australia, India, Japan and Vietnam were maintained at above 98%. Temporary vacancies in Singapore and Vietnam are expected to be backfilled in 2QFY25.
Resilient balance sheet.
- Read more at SGinvestors.io.
Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.
Jonathan KOH CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 2024-07-26
Read also UOB's most recent report:
2024-10-24 Mapletree Logistics Trust 2QFY25 - Negative Double-digit Rental Reversion In China.
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
