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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These 2 REITS Have Delivered Strong Performances Recently
- Original Post from The Motley Fool Sg

In a low-interest environment, REITs are a particularly attractive investment due to their relatively predictable earnings power. In this article, I will look at two REITs that have lived up to their investors’ expectations by delivering positive performance in their latest earnings.
Mapletree Logistics Trust (SGX: M44U), or MLT, is one of those REITs that has delivered commendable results recently.
As a quick introduction, MLT owns 124 logistics properties around Asia-Pacific region that includes Singapore, Hong Kong, Japan, South Korea, Australia and others.
In the fourth quarter, revenue grew 11% year-on-year to S$107.5 million while net property income increased 14% to S$91.3 million. Distribution per unit (DPU) was up by 4.1% as compared to the same period last year. The 4.1% year-on-year growth was achieved despite an increase in shares from 2.5 billion a year ago to around 3.1 billion in the latest period.
The stronger performance was mainly driven by growth from the existing portfolio, initial contribution from a newly-completed redevelopment in Singapore, as well as contributions from acquisitions.
Ng Kiat, the chief executive of MLT’s manager, made the following comments:
“We are pleased to report a 4% year-on-year growth in MLT’s 4Q DPU to 1.937 cents, ahead of the forecast DPU of 1.919 cents provided in the circular dated 28 August 2017. FY17/18 was a busy year in which we strengthened the competitive edge of our portfolio with the addition of two new quality assets with modern specifications – Mapletree Logistics Hub Tsing Yi in Hong Kong and Mapletree Pioneer Logistics Hub in Singapore. We expect to build on this momentum to continually improve our portfolio through strategic acquisitions and redevelopments. At the same time, we will continue with active asset and lease management to maintain high occupancy and optimise returns.”
Based on the full year DPU of 7.618 Singapore cents and closing price of S$1.25 on 14 May 2018, the REIT has a trailing distribution yield of 6.1%.
The next REIT that has performed well is Mapletree Greater China Commercial Trust (SGX: RW0U), or MGCCT.
As a quick introduction, MGCCT has properties in China and Hong Kong. It currently has three properties in its portfolio namely, Festival Walk, Gateway Plaza, and Sandhill Plaza.
For the financial year ended 31 March 2018, gross revenue increased 1.3% to S$355.0 million whilst net property income was up by 0.5% to S$287.2 million. DPU came in at 7.481 cents, 1.9% higher than the same period last year.
The improvement in performance was driven by higher revenue growth from Festival Walk and Gateway Plaza as a result of higher rental rate.
Cindy Chow, the chief executive MGCCT’s manager, said:
“MGCCT has reported a positive set of results for FY17/18. Through our proactive portfolio management efforts, the portfolio remains resilient with a high portfolio occupancy rate of 98.5%, as well as a healthy average rental reversion for each asset.”
Based on MGCCT’s full-year DPU of 7.481 and its closing unit price of S$1.16 on 14 May 2018, the REIT has a trailing distribution yield of 6.4%.
$Mapletree Log Tr(M44U.SI) $Mapletree GCC Tr(RW0U.SI)

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3 Things Mapletree Logistics Trust’s Management Wants You To Know About Its Business
- Original Post from The Motley Fool Sg

In late April, Mapletree Logistics Trust (SGX: M44U) released its fourth quarter and full year earnings update for its fiscal year ended 31 March 2018 (FY17/18).
As a quick introduction, Mapletree Logistics Trust is a REIT that owns 124 logistics properties around Asia and Australia.
The Manager of Mapletree Logistics Trust had given a presentation on the REIT’s latest results. In the presentation deck, I saw three slides on the REIT’s business that I think investors should pay attention to.
The first slide shows a high-level summary of the REIT’s income statement for the fourth quarter of FY17/18:

Source: Mapletree Logistics Trust FY17/18 fourth quarter earnings presentation
We can see that the REIT had a good quarter as there was strong growth in gross revenue, net property income, amount distributable to unitholders, and available DPU. Mapletree Logistics Trust credited its overall performance to growth from the existing portfolio, initial contributions from a newly completed redevelopment in Singapore, as well as contributions from acquisitions.
As of 31 March 2018, the REIT’s gearing stood at 37.7%, which is within the regulatory limit of 45%. Its committed occupancy rate was also healthy at 96.6%.
The next slide I want to discuss shows a breakdown of the REIT’s occupancy rate by geography:

Source: Mapletree Logistics Trust FY17/18 fourth quarter earnings presentation
We can observe that all of the REIT’s geographical markets, with the exception of Hong Kong, had 100% or year-on-year improvement in occupancy rates. This is a sign of the strength in demand for the REIT’s properties. Mapletree Logistics Trust attributed its lower occupancy rate in Hong Kong to asset enhancement works in its Shatin No. 3 property. Excluding this, Hong Kong’s occupancy rate would have been 99.9%.
The last slide I want to talk about shows the REIT’s lease expiry profile:

Source: Mapletree Logistics Trust FY17/18 fourth quarter earnings presentation (SUA stands for single-user asset; MTB stands for multi-tenanted building)
The lease expiry profile is an important thing to study for a REIT as it gives us clues on how stable the REIT’s rental income may be.
There are two positive traits with Mapletree Logistics Trust’s lease expiry profile. Firstly, the REIT’s portfolio had a reasonable weighted average lease to expiry of 3.5 years by net lettable area as of 31 March 2018.
Secondly, the staggered nature of the REIT’s lease expiry profile reduces the pressure on the REIT to renew leases in any particular year. With more than half of Mapletree Logistics Trust’s leases expiring after FY20/21, the REIT should have reasonable visibility on its rental income stream for the next three to five years.
$Mapletree Log Tr(M44U.SI)

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

Mapletree Logistics Trust (SGX: M44U) — or MLT — is a real estate investment trust (REIT) that owns 124 logistics properties around Asia and Australia.
The REIT has recently announced its fourth quarter results for the year ending March 2018 (4Q FY17/18). Here, we will look at 10 things that investors should know about its latest result.
In the latest quarter, gross revenue grew 17.9% year-on-year to S$ 38.0 million whilst net property income (NPI) improved by 18.2% during the period to S$ 34.1 million.
Distribution per unit (DPU) was up by 4.1% as compared to the same period last year. The 4.1% year-on-year growth was achieved despite an increase in shares from 2.5 billion last year to 3.058 billion this year.
Based on FY17/18 full year DPU of 7.618 Singapore cents and closing price of S$1.26 as at 27 April 2018, the REIT has a trailing distribution yield of 6.0%.
As of 31 March 2018, the REIT’s gearing stood at 37.7%, which is a safe distance from the regulatory ceiling of 45%.
The REIT’s committed occupancy rate stood at 96.6% at the end of the quarter.
The portfolio achieved an average rental reversion of 2.6% for FY17/18.
Weighted average expiry profile stood 3.5 years by NLA (net lettable area), with 44.5% of leases to expire in the next two years, 30.6% of leases to expire in the following three years, and the remaining to expire after five years.
Single-User Asset and Multi-Tenanted Buildings accounted for 34% and 66%, respectively, of current quarter revenue breakdown.
During FY17/18, MLT acquired Mapletree Logistics Hub Tsing Yi and the remaining 38% in strata share value of Shatin No. 3, both of which are located in Hong Kong. It also divested four properties in Japan, Singapore and Malaysia.
The REIT also provided the following outlook:
“With continued economic growth projected for the region, demand for logistics properties is expected to remain healthy across MLT’s diversified markets. Possible escalation in trade tension and faster than expected interest rate rise in advanced economies may temper this expected growth.
In Singapore, the leasing environment remains competitive in the near term as it takes time for the existing vacant warehouse space to be absorbed by the market. However, new supply is expected to taper in the coming years. In Hong Kong, favourable supply-demand dynamics should continue to support rental rates and high occupancies. MLT’s portfolios in Japan and Australia remain stable, underpinned by 100% occupancy rates and long leases. “
$Mapletree Log Tr(M44U.SI)

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Can Mapletree Logistics Trust Continue Its Impressive Growth?
- Original Post from The Motley Fool Sg

Mapletree Logistics Trust (SGX: M44U) is an Asia-focused logistic REIT listed in Singapore. It has a portfolio valued at S$6.2 billion which consists of 124 assets located across Asia, including Singapore, Hong Kong, Japan, Australia, China, Malaysia, South Korea and Vietnam.
Since its listing in 2015, Mapletree Logistics Trust has grown at an impressive rate from its initial portfolio of just 15 properties in 2005. However, the future may not always mirror the past.
To determine if the trust continues to have the potential to grow its distributable income in the future as it did before, I will take a look at three key aspects of the trust: 1) its gearing ratio; 2) potential positive asset revaluations; and 3) potential for organic income growth.
Gearing ratio
The gearing ratio is the amount of debt a REIT has in comparison with its assets. The lower the gearing ratio, the more debt the REIT can take on in the future to fund acquisitions.
As of 31 December 2017, Mapletree Logistics Trust had a gearing ratio of 37.8%. Although this is still some way away from MAS’ regulatory gearing limit of 45%, it is still considered quite high among REITs in Singapore.
As a point of comparison, other logistics trusts in Singapore such as Frasers Logistics and Industrial Trust (SGX: BUOU) and EC World Real Estate Investment Trust (SGX: BWCU) have gearing ratios of 31% and 29% respectively. Mapletree Logistic Trust’s comparatively higher gearing ratio may limit the trust’s capacity to make debt-funded acquisitions in the future.
Potential for positive asset revaluations
Asset revaluations may not lead directly to increased distributions, but it is important in improving the balance sheet of a REIT. The larger the asset base, the more debt the REIT can take on in the future to fund its acquisitions. The REIT can also realise the gain when they decide to sell its properties in the future.
In the last full financial year ended 31 March 2017, Mapletree Industrial Trust’s portfolio had a revaluation gain of S$39 million. With most of its properties sitting on long land tenures and as the growing need of logistics as e-commerce develops, I am optimistic that the REIT’s strong portfolio of logistics real estate can continue to appreciate.
Asset enhancement initiatives to drive organic growth
Finally, asset enhancement initiatives can increase the REIT’s rental income on its existing properties. Mapletree Logistics Trust has done well in this regard as they have a history of continuously investing and improving their current portfolio.
Most recently, the trust completed the redevelopment of one of its properties in Singapore, increasing the gross floor area by 80% in the process. It has further plans to expand the gross floor area of another of its China properties by 140%, which will be fully completed by 2020.
The full effect of these initiatives will only be felt once redevelopment works have been completed and will most likely boost distributions to unitholders.
The Foolish bottom line
Despite a high gearing ratio, Mapletree Logistics Trust has a few catalysts in place that might improve its distributions in the future. Firstly, it has a well-diversified and strong portfolio of assets that will likely appreciate. Secondly, the redevelopment projects will also have the effect of increasing its net property income on its existing portfolio.
All things considered, I believe that there are enough reasons to believe that Mapletree Logistics Trust has the potential to continue to reward unitholders over the next few years.
$Frasers L&I Tr(BUOU.SI) $EC World Reit(BWCU.SI) $Mapletree Log Tr(M44U.SI)

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How Much Has Mapletree Logistics Trust Grown Since Its IPO?
- Original Post from The Motley Fool Sg

Mapletree Logistics Trust (SGX: M44U), or MLT for short, is one of the older REITs in Singapore. It was listed way back in 2005 and has grown at an impressive rate from its initial portfolio of 15 Singapore-based logistics assets worth S$422 million to its current international portfolio of 127 properties with a total book value of S$5.5 billion.
That said, I wanted to find out by how much unitholder value has grown over that time. If its expansion was achieved merely through equity financing, without the accompaniment of organic income growth and appreciation of existing properties, then the impressive portfolio expansion would have done little to increase unitholder value.
To determine how much unitholders have been rewarded since its initial public offering (IPO), I will compare three important key performance indicators. They are: 1) the net asset value per unit; 2) net property income per unit; and 3) distribution per unit. The growth in these metrics will be more important to unitholders as it takes into account any unit dilution that may have occurred along the way.
Net asset value per unit
The net asset value (NAV) per unit is equivalent to the assets less any liabilities and divided by the total number of units. Mathematically, it can be represented by the following equation.
Net asset value per unit = ((Total assets – total liabilities))/number of outstanding units in existence)
On its listing date on 28 July 2005, MLT had a NAV per unit of S$0.56. Fast-forward to 31 March 2017, MLT had grown its NAV per unit to $1.04. That translates to a compounded annual growth (CAGR) of 5.29%.
Net property income per unit
The changes in net property income (NPI) per unit will reflect whether the trust has managed to grow its earnings capacity for existing unitholders. MLT’s NPI per unit has increased from 2.3 cents in 2005 to 10.2 cents in the last full financial year ended 31 March 2017. This is a CAGR of around 13.34%.
Distribution per unit
Perhaps of most important to REIT investors is whether the REIT can grow its distribution per unit (DPU) over time. A REIT’s ability to grow its DPU over the long-term is essential in generating excellent long-term returns for unitholders. Once again, MLT has performed well in this regard, increasing its DPU by a CAGR of 4.7% from 4.28 cents in 2015 to 7.44 cents for the full-year ended 31 March 2017.
The Foolish bottom line
The per unit information is certainly more useful than looking at a REIT’s overall performance as it takes into account any unit dilution that may have occurred during the period under study. From what we have seen, MLT has delivered a strong performance in all three aspects of its business, growing its NAV per unit, while increasing its earnings capacity and distribution per unit. This reflects the prudent use of capital and the management’s eye for strategic investments.
$Mapletree Log Tr(M44U.SI)

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