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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Mapletree Logistics Trust’s Latest Earnings: What Investors Should Know
- Original Post from The Motley Fool Sg

Mapletree Logistics Trust (SGX: M44U) is the first Asia-focused logistics REIT in Singapore with a portfolio of 124 logistics assets in Singapore, Hong Kong, Japan, Australia, China, Malaysia, South Korea and Vietnam.
Yesterday, the REIT announced its financial results for the third-quarter ended 31 December 2017. Here’s a quick rundown on the financial figures from the earnings release:
1. Gross revenue for the quarter grew 2.8% year-on-year to S$98.2 million.
2. Net property income rose 3.9% to S$83.0 million.
3. Amount distributable to unitholders surged 24.5% to S$58.3 million.
4. Distribution per unit (DPU) was at 1.907 cents, up 2% from 1.870 cents seen a year ago. The muted increase was due to an enlarged units base after an equity fundraising that was carried out in September last year.
5. As at 31 December 2017, the net asset value (NAV) per unit was S$1.05. In comparison, at the end of September 2017, the figure came in at S$1.03.
The rise in gross revenue for the quarter was due to a stable performance from the existing assets and contributions from acquisitions. This was partly offset by non-contribution from three divested properties in Japan and Singapore, and one block in China’s Ouluo Logistics Centre which is undergoing redevelopment.
Earlier this month, the trust also completed the divestment of Senai-UPS in Malaysia for MYR 28 million (around S$9.2 million).
For the quarter, portfolio occupancy went up to 96.2% from 95.8% in the previous quarter. The increase was due to higher occupancies in Hong Kong, South Korea and Malaysia. Meanwhile, the weighted average lease expiry by net lettable area was 3.6 years.
As at 31 December 2017, Mapletree Logistics Trust’s aggregate leverage was 37.8%, and the average debt duration was 4.6 years. In comparison, as at 30 September 2017, the figures were at 33.7% and 4.7 years respectively. Higher total debt brought about the increase in gearing level. However, the REIT has no refinancing risk for the upcoming financial year.
Looking ahead, the logistics REIT said the following:
“The economic outlook for Asia is improving alongside the firming in global growth. As a portfolio, the Manager continues to see sustained leasing activities across its diversified markets supporting stable rental and occupancy rates. However, in Singapore, the market continues to face pressure from a high supply of warehouse space.”
Mapletree Logistics Trust is now selling at S$1.36 per unit. This gives a price-to-book ratio of 1.3 and a trailing distribution yield of 5.5%.
$Mapletree Log Tr(M44U.SI)

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The 6 Best Performing REITs In 2017
- Original Post from The Motley Fool Sg

The Straits Times Index (SGX: ^STI) started 2017 at 2,881 points and ended the year 18.1% higher at 3,403. Yet, this healthy return does not imply that all types of stocks in the local market did well.
Fortunately for investors who like real estate investment trusts, 2017 was a year in which REITs had a respectable performance; in the 12 months ended 8 January 2018, REITs in Singapore’s market had produced a return of around 18%. But this being said, not every REIT had generated good returns in the past year.
This article is the third in a short series which will look at the best and worst performing REITs in 2017. In the first article, I studied three REITs with good returns in the year. In the second piece, I discussed two REITs that did relatively poorly. In here, I will focus on three more REITs that experienced good gains in 2017.
Mapletree Logistics Trust (SGX: M44U) is first on my list. It is a real estate investment trust that owns 124 logistics properties in Australia, and many other countries in Asia, including Singapore, China, and Hong Kong.
In the first half of its fiscal year ending 31 March 2018 (the reporting period is from 1 April 2017 to 30 September 2017), Mapletree Logistics Trust reported a 5.0% year-on-year increase in net property income to S$159.6 million. Its distribution per unit (DPU) also enjoyed growth of 1.7% to 3.774 cents.
In its earnings release, the REIT gave succinct but useful commentary on its outlook. Here it is:
“As a portfolio, the Manager continues to see sustained leasing activities across its diversified markets. Singapore’s market recovery is still slow due to pressure from the increase in supply of warehouse space. Hong Kong is expected to remain a strong market for MLT. In addition, Japan and Australia continue to provide stable income streams underpinned by 100% occupancy rates and long weighted average lease expiries.
The Manager is focused on maintaining high occupancy rates by actively managing leases due for renewal. For the remainder of FY17/18, a balance of 9.4% of MLT’s leases (by net lettable area) are due for renewal, of which 1.8% are leases for single-user assets and 7.6% are leases for multitenanted buildings.”
2017 saw Mapletree Logistics Trust deliver a total return (this includes distribution gains) of 38.8%. At the REIT’s current unit price of S$1.35, it has a price-to-book (PB) ratio of 1.14.
Next up, we have OUE Hospitality Trust (SGX: SK7), which generated a total return of 38.2% in 2017.
OUE Hospitality Trust is a stapled trust that consists of a REIT, and a business trust. Its real estate portfolio currently comprises the hotel, Mandarin Orchard Singapore, and an interconnected high-end retail mall, Mandarin Gallery. The portfolio also has the Crowne Plaza Changi Airport hotel. These three assets are all located in Singapore.
In the first nine months of 2017, OUE Hospitality Trust saw its net property income increase by 7.3% year-on-year to S$83.5 million. Its distribution per stapled security did even better; it climbed by 19.1% to 3.87 cents.
The trust had the following comments in its earnings release on its market environment:
“Singapore Tourism Board (“STB”) reported a 4.0%1 year-on-year increase in international visitor arrivals in the first eight months of 2017. For the full year 2017, STB has forecast 0% to 2% growth in international visitor arrivals at 16.4 million to 16.7 million.
Though the economic outlook has improved, there are still risks to achieving sustained recovery. Going into 2018, the return of large biennial events, such as the Singapore Airshow, are expected to increase demand for hotel accommodation but new supply continues to come on-stream in 4Q2017 and into 2018. As such, the market environment remains competitive.”
OUE Hospitality Trust’s stapled securities have a price of S$0.88 each right now, giving the trust a PB ratio of 1.16.
The third REIT I have is Parkway Life REIT (SGX: C2PU),  one of Asia’s largest listed healthcare REITs by asset size. The REIT has ownership over three private hospital properties in Singapore, and holds stakes in 45 healthcare-related assets in Japan. It also has strata-titled units/lots in Gleneagles Intan Medical Centre in Malaysia.
Parkway Life REIT delivered net property income of S$76.9 million in the first nine months of 2017, which was flat compared to a year ago. But, its distribution per unit increased by 10.0% to 9.97 cents.
In its earnings release, Parkway Life REIT commented that the “long-term outlook of the industry continues to be driven by favourable patient demographics and demand for better quality healthcare and aged care services.” The REIT believes that its “enlarged portfolio of 49 high-quality healthcare and healthcare-related assets places it in a good position to benefit from the resilient growth of the healthcare industry in the Asia Pacific region.”
Parkway Life REIT added that “at least 95% of its Singapore and Japan portfolios have downside revenue protection and 62% of the total portfolio is pegged to CPI-linked revision formulae, ensuring steady future rental growth whilst protecting revenue stability amid uncertain market conditions.”
At the REIT’s current unit price of S$2.97, it has a PB ratio of 1.73. In 2017, Parkway Life REIT’s total return was 33.1%.
$ParkwayLife Reit(C2PU.SI) $Mapletree Log Tr(M44U.SI) $OUE HTrust(SK7.SI)

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3 Things You Need to Know About the Singapore Stock Market Today
- Original Post from The Motley Fool Sg

Hello, everyone! Here are three things about the local stock market that you might be interested in today.
1. The Straits Times Index (SGX: ^STI), finished the day at 3,334.67 points, declining 15.13 points or 0.45%.
The biggest loser in the index was Hutchison Port Hldg Trust (SGX: NS8U), slumping 2.2% to US$0.445.
Meanwhile, Ascendas Real Estate Investment Trust (SGX: A17U) gained the most today. The industrial REIT added 0.4% to S$2.75.
2. Singapore Technologies Engineering Ltd (SGX: S63) announced that its electronics arm, ST Electronics, had clinched around S$585 million worth of contracts in the third quarter of the year.
The bulk of the contracts, at S$359 million, was from the Advanced Electronics and Information Communications Technologies Solutions sector. S$125 million belonged to the Rail Electronics and Intelligent Transportation sector while the rest came from Satellite & Broadband Communications.
Shares of the conglomerate ended Tuesday flat at S$3.38.
3. We are into the earnings season right now. Here are some of the latest coverage:
First Real Estate Investment Trust (SGX: AW9U) – click here
Mapletree Logistics Trust (SGX: M44U) – click here
First REIT and Mapletree Logistics Trust closed at S$1.38 and S$1.255 respectively.
$Ascendas Reit(A17U.SI) $First Reit(AW9U.SI) $Mapletree Log Tr(M44U.SI) $HPH Trust USD(NS8U.SI) $ST Engineering(S63.SI)

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10 Things Investors Should Know About Mapletree Logistics Trust’s Latest Earnings
- Original Post from The Motley Fool Sg

Mapletree Logistics Trust (SGX: M44U) – which owns 124 logistics assets in Singapore and seven other countries – saw its second quarter distribution per unit grow 1.5% year-on-year to 1.887 cents. The reporting quarter ran from 1 July 2017 to 30 September 2017.
Here are nine other things to note from the latest earnings release:
1. Gross revenue went up 2.3% year-on-year to S$93.7 million. Revenue growth was mainly due to increased revenue from existing properties in Hong Kong and China, contributions from acquisitions and higher translated revenue from a stronger Australian Dollar.
2. Net property income rose 2.5% to S$78.7 million.
3. The amount available for distribution grew 3.5% to S$48.2 million.
4. Net asset value per unit was at S$1.03, as of 30 September 2017. This is a growth from S$1.02 seen at the end of June 2017.
5. As of 30 September 2017, the aggregate leverage ratio stood at 33.7%, down from 39%, as of 30 June 2017.
6. Around 91% of total debt is hedged or drawn at fixed rates, helping to mitigate the rise in interest rates in the future.
7. The portfolio occupancy improved from 95.5% in the first quarter to 95.8% in the latest quarter. The growth was due to higher occupancies from properties in Singapore, Australia, South Korea, China and Vietnam.
8. Leases renewed during the quarter saw their rental rates go up on average by 1.4% as compared to the preceding rental rates. The rise was mostly due rental increases in Hong Kong and China properties.
9. Going forward, REIT’s manager is looking to sustain high occupancy rates by actively managing leases due for renewal. For the remainder of the financial year, a balance of 9.4% of leases (by net lettable area) are due for renewal.
Mapletree Logistics Trust’s units are going at S$1.27 now. This gives a price-to-book ratio of 1.23 and a trailing distribution yield of 5.9%.
$Mapletree Log Tr(M44U.SI)

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Mapletree Logistics Trust’s Annual Report: 22 Key Numbers Investors Should Know
- Original Post from The Motley Fool Sg

Mapletree Logistics Trust (SGX: M44U) released its annual report for the financial year ending 31 March 2017 (FY16/17) in late June.
As a brief background, Mapletree Logistics Trust was listed on 28 July 2005 and is Singapore’s first Asia-Pacific focused logistics real estate investment trust (REIT). We can learn more about the REIT from its annual report.
With that in mind, here are 22 key figures investors should know:
1. At the end of FY16/17, Mapletree Logistics Trust had 127 properties in eight geographical markets, with a gross floor area of 3.7 million. The set of industrial properties is estimated to be worth $5.5 billion. Singapore remains a cornerstone for the REIT with 50 properties.
2. The REIT generated $373.1 million for FY16/17. The Garden City was the largest contributor, accounting for 38.7% of total sales. The next largest markets were in Japan and Hong Kong with a 19.3% and 14.9% contribution respectively.   
3. Mapletree Logistics Trust’s properties serve a wide variety of customers. The food and beverage (F&B) industry accounted for 24% of revenue from major end-users followed by electronics and IT (information technology) at 17%. Multi-tenanted buildings (MTB) accounted for 57% of revenue with the other 43% coming from single user assets (SUA).  
4. Next, we take a look at debt. Mapletree Logistics Trust has a debt load of $2.2 billion at the end of the fiscal year, which adds up to a 38.5% aggregate leverage. The effective interest rate was around 2.3% while the interest cover ratio was 5.6 times. The REIT had undrawn banking facilities of $840 million at the end of FY16/17.
5. Let’s turn our eyes to management compensation. The REIT manager is entitled to a base fee of 0.5% per year of the value of its properties, and a 3.6% annual performance fee of the REIT’s net property income (NPI). There is also an acquisitions fee of not more than 1% and a divestment fee that does not exceed 0.5%.  
6. On the unit ownership side, Singapore’s Temasek Holdings (Private) Limited has the biggest share in the REIT with a deemed interest of 40.1% in Mapletree Logistics Trust.  
$Mapletree Log Tr(M44U.SI)

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