Mapletree Logistics Trust (MLT) reported its 3QFY13 scorecard last evening. NPI grew by 9.7% YoY to S$67.5m, while DPU recorded a marginal increase of ~1% to 1.72 S cents. The slower pace of growth was due to a S$4.7m distribution to perpetual securities holders and a S$0.7m divestment gains in 3QFY12. Excluding the gains, DPU would have improved by ~3%. Portfolio occupancy as at 31 Dec 2012 was also maintained at 99.2%, unchanged from 2Q as a result of active asset management efforts. In addition, average rentals achieved in 3Q were 17% higher than preceding rents (2Q: 8%). Looking ahead, MLT warned that the economic outlook continues to remain fragile but added that leasing demand has been holding well thus far. We now make some minor adjustments to our forecasts as we incorporate the 3Q results. However, there is no change to our fair value of S$1.25. Maintain BUY.
3QFY13 results within expectations
Mapletree Logistics Trust (MLT) reported its 3QFY13 scorecard last evening. NPI grew by 9.7% YoY to S$67.5m due to contribution from its past acquisitions and healthy organic growth from its existing properties. Amount distributable to unitholders and DPU, on the other hand, recorded a marginal increase of ~1% to S$41.8m and 1.72 S cents respectively. The slower pace of growth was due to a S$4.7m distribution to perpetual securities holders and a S$0.7m divestment gains in 3QFY12. Excluding the gains, both items would have improved by ~3%. The results were largely within expectations, given that 9MFY13 DPU formed 73% of both our and consensus full-year forecasts.
Stability is still the key theme
Portfolio occupancy as at 31 Dec 2012 was maintained at 99.2%, unchanged from 2Q as a result of active asset management efforts. During the quarter, we note that MLT had renewed/replaced ~124,000 sqm of space, making up 97% of total NLA due for renewal in 3Q. As such, only 1.9% of its leases are left for renewal for the rest of FY13. Weighted average lease to expiry also remained strong at 5.5 years, giving MLT good earnings predictability. Moreover, average rentals achieved in 3Q were 17% higher than preceding rents (2Q: 8%). This reflects continued healthy demand in logistics space in our view.
Financial position stayed robust
MLT’s aggregate leverage also improved 1.1ppt QoQ to 35.9%, while funding costs and debt duration stood steady at 2.4% and 4.1 years respectively. While MLT was impacted by weakening JPY on various fronts, its distributable income was unscathed, just as we had previously expected since over 90% of its income stream is hedged/derived in SGD. Looking ahead, MLT warned that the economic outlook continues to remain fragile but added that leasing demand has been holding well thus far. We now make some minor adjustments to our forecasts as we incorporate the 3Q results. However, there is no change to our fair value of S$1.25. Maintain BUY.
Mapletree Logistics Trust (MLT) reported its 3QFY13 scorecard last evening. NPI grew by 9.7% YoY to S$67.5m due to contribution from its past acquisitions and healthy organic growth from its existing properties. Amount distributable to unitholders and DPU, on the other hand, recorded a marginal increase of ~1% to S$41.8m and 1.72 S cents respectively. The slower pace of growth was due to a S$4.7m distribution to perpetual securities holders and a S$0.7m divestment gains in 3QFY12. Excluding the gains, both items would have improved by ~3%. The results were largely within expectations, given that 9MFY13 DPU formed 73% of both our and consensus full-year forecasts.
Stability is still the key theme
Portfolio occupancy as at 31 Dec 2012 was maintained at 99.2%, unchanged from 2Q as a result of active asset management efforts. During the quarter, we note that MLT had renewed/replaced ~124,000 sqm of space, making up 97% of total NLA due for renewal in 3Q. As such, only 1.9% of its leases are left for renewal for the rest of FY13. Weighted average lease to expiry also remained strong at 5.5 years, giving MLT good earnings predictability. Moreover, average rentals achieved in 3Q were 17% higher than preceding rents (2Q: 8%). This reflects continued healthy demand in logistics space in our view.
Financial position stayed robust
MLT’s aggregate leverage also improved 1.1ppt QoQ to 35.9%, while funding costs and debt duration stood steady at 2.4% and 4.1 years respectively. While MLT was impacted by weakening JPY on various fronts, its distributable income was unscathed, just as we had previously expected since over 90% of its income stream is hedged/derived in SGD. Looking ahead, MLT warned that the economic outlook continues to remain fragile but added that leasing demand has been holding well thus far. We now make some minor adjustments to our forecasts as we incorporate the 3Q results. However, there is no change to our fair value of S$1.25. Maintain BUY.
No comments:
Post a Comment