Your 60-Second Guide to Mapletree Logistics Trust (SGX: M44U) Units
Sudhan Pâ—Ź
In this series, we feature one Singapore-listed company each time as a quick guide to important things you should know about it in 60 seconds.
Here, we have Mapletree Logistics Trust (SGX: M44U), a logistics REIT. Previously, we featured property outfit, Hongkong Land Holdings Limited (SGX: H78).
What’s Mapletree Logistics Trust’s Business About?Â
Mapletree Logistics Trust is an Asia-focused logistics REIT listed here in 2005.
As of 31 March 2020, Mapletree Logistics Trust had a portfolio of 145 logistics assets in countries such as Singapore, Japan, and China.
In all, the properties were valued at S$8.9 billion, with the majority of assets in Singapore.The following pie chart shows how diversified Mapletree Logistics Trust’s tenant base is:
Mapletree Logistics Trust’s Financial HighlightsÂ
The following table shows some key financials of Mapletree Logistics Trust (the REIT has a 31 March year-end):
| FY15/16 | FY16/17 | FY17/18 | FY18/19 | FY19/20 | |
|---|---|---|---|---|---|
| Gross revenue (S$' million) | 349.9 | 373.1 | 395.2 | 454.3 | 490.8 |
| Net property income (S$' million) | 290.9 | 312.2 | 333.8 | 389.5 | 438.5 |
| Amount distributable to unitholders (S$' million) | 183.3 | 186.1 | 212.9 | 270.0 | 301.7 |
| Net asset value per unit (S$) | 1.02 | 1.04 | 1.10 | 1.17 | 1.21 |
The blue-chip REIT’s gross revenue increased from S$349.9 million in FY15/16 to S$490.8 million in FY19/20.
With that, net property income grew from S$290.9 million to S$438.5 million during the same period.
Net property income is what is left after deducting property operating expenses such as property management fees and property tax.
Amount distributable to unitholders has grown over the years too. As the term might already suggest, this is cash that is available to be distributed out to Mapletree Logistics Trust unitholders.
This financial metric has increased from S$183.3 million in FY15/16 to S$301.7 million in FY19/20.
Mapletree Logistics Trust’s Distribution Per Unit History
With the step-up in amount distributable to unitholders, distribution per unit (DPU) has grown over the years as well.
| FY15/16 | FY16/17 | FY17/18 | FY18/19 | FY19/20 | |
|---|---|---|---|---|---|
| Distribution per unit (Singapore cents) | 7.380 | 7.440 | 7.618 | 7.941 | 8.142 |
Mapletree Logistics Trust’s DPU climbed by 2.5% annually, from 7.380 Singapore cents in FY15/16 to 8.142 Singapore cents in FY19/20.
Major Risk for Mapletree Logistics Trust to Take Note Of
Given its diversified portfolio, Mapletree Logistics Trust has been relatively unscathed for FY19/20.
In the fourth quarter of its latest fiscal year, gross revenue and NPI grew by 5.5% and 9.3%, respectively, year-on-year. DPU also increased by 1.2%.
The growth in DPU is a sharp contrast to other REITs, such as Mapletree Commercial Trust (SGX: N2IU), which had to drastically cut DPU to retain cash for prudence sake due to the COVID-19 pandemic.
However, Mapletree Logistics Trust’s manager has warned that the COVID-19 situation “introduces uncertainties for future quarters”. This is one major risk investors have to be mindful about right now.
Mapletree Logistics Trust’s Unit Price and Valuation
Over the past five years, Mapletree Logistics Trust’s unit price has increased by close to 54% in all.
At the time of writing, Mapletree Logistics Trust is selling at S$1.82 per unit.
At the unit price of S$1.82, Mapletree Logistics Trust sports a price-to-book ratio of 1.5 and a distribution yield of 4.5%.
Want More In-Depth Analysis And Discussion?
Why not check out the Seedly Community and participate in the lively discussion surrounding REITs and more!
Disclaimer: The information provided by Seedly serves as an educational piece and is not intended to be personalised investment advice. ​Readers should always do their own due diligence and consider their financial goals before investing in any stock.Â
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