3 Key Things to Know About Mapletree Logistics Trust
- Original Post from The Motley Fool Sg

Mapletree Logistics Trust (SGX: M44U) held its annual general meeting (AGM) in July.
As a brief background, Mapletree Logistics Trust is a real estate investment trust (REIT) that owns 127 logistics properties around Asia. It was listed on 28 July 2005 and is Singapore’s first Asian focused logistics REIT. We can learn more about the REIT from its AGM presentation slides. I have picked out three slides that might be insightful for investors:
1. Beyond Singapore
Mapletree Logistics Trust shared this summary during its AGM. The slide shows the revenue and asset value split by geography:

Source: Mapletree Logistics Trust’s earnings presentation
Mapletree Logistics Trust is listed in Singapore, but it makes most of its money from its overseas properties.
From the above, we can see that the three biggest contributors are Singapore, Japan and Hong Kong. The REIT’s home country contributed 38.7% to its overall revenue in the financial year ended 31 March 2017 (FY16/17). Meanwhile, Japan accounted for over 19% of revenue while Hong Kong pitched in almost 15% of sales.  
2. Land leases
One key area to watch would be the land leases. The slide below summarises the lease tenure of its underlying properties by country:

Source: Mapletree Logistics Trust’s earnings presentation
Singapore and Hong Kong are major revenue contributors, but 37.4% of its leases end in less than 40 years. The REIT has made a push to deepen its presence in Australia. As a result, the number of freehold properties has also increased from 40 assets a year ago to 47 assets at FY16/17’s end.
But Mapletree Logistics Trust will have to raise funds to get new properties into its portfolio.
3. Debt profile
The slide below shows the summary of Mapletree Logistics Trust’s debt profile.  

Source: Mapletree Logistics Trust’s earnings presentation
At the end of March 2017, the REIT had just under $2.2 billion in debt and a leverage ratio of 38.5%. More importantly, its debt maturity is well-staggered with no single year accounting for more than 17% of total debt. With the spread-out distribution, Mapletree Logistics Trust might not face as much pressure to refinance its debt from year-to-year.
$Mapletree Log Tr(M44U.SI)

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2) Manulife Reit: 41 rights @US$0.695 for every 100 units.
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3) $Mapletree Log Tr(M44U.SI) launched a non-renounceable preferential offering on the basis of one New Unit $1.113 - $1.1145 for every 10 existing units in MLT.
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4) $CapitaCom Trust(C61U.SI) 166 rights@$1.363 for every 1000 shares.
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thats the reason why i buy

$NikkoAM-STC Asia REIT(CFA.SI) , no worries if there is a rights issue. =)

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$Mapletree Log Tr(M44U) I have a noob question. Can one buy the rights issue for the fundraising without first being an existing shareholder? Or do I need to buy random few stocks to qualify for the rights (which are cheaper than market price)?

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There have been a lot of S$ bonds recently issued, and demand so far has been healthy. Part of the reason for the good demand is because a few large perps have been called - eg $Genting Sing(G13.SI) 5.125% and $Mapletree Log Tr(M44U.SI) 5.125%. These perps had good coupon step-ups, hence they were called.
The recent issues had much lower coupons, at 3.95% for eg by $StarHub(CC3.SI) and $Frasers Cpt(TQ5.SI)
The step-up structures are also not that great - some only step-up after 10 years, effectively making them a possible 10 year bond (despite the fact many have call dates in year 5).

I am getting a bit concerned about this and myself will start looking at some of the older bonds out there as they have more solid structures some of the older perps come with proper step-ups that help ensure you get a decent coupon and possible call.

Some of bonds I am looking at or recently vested are the $Courts Asia(RE2.SI) 5.75% March 2019, $Lippo Malls Tr(D5IU.SI) 6.6% perp, $Sembcorp Ind(U96.SI) 4.75% perp, $Mapletree Com Tr(N2IU.SI) 4.50% Perp for example. $Wing Tai(W05.SI) also has 2 perp issues, but I havent studied their credit matrices yet.
Their prices are above par, but the yields to call and maturity are close to those of the recent issues. The recent issues have traded up, yet the older issues give more value, in my opinion.
A switch at the right time could be worth considering also.

This is just my personal view, so please do your own due D.

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