Thursday 11 May 2017

Rationalising Mapletree Logistics Trust ...



Mapletree Logistics Trust is one of the best performers in my portfolio. My interest in MLT lies in their well-managed business across the Asia-Pacific region and backing by a strong sponsor - Temasek. I managed to sieve out 5 key indicators from their 4Q2016 & FY2016/17 results which could be useful to note:
  • Business performance, in terms of available Distribution Per Unit, has increased by 0.8% Year-on-Year.
  • Increase in Net Asset Value from S$1.02 to S$1.04.
  • Aggregate leverage fell from 39.6% to 38.5%. This could potentially provide MLT with the capacity to borrow more to fund further acquisitions.
  • 81% debt hedged into fixed rates & 72% of income stream for FY17/18 hedged into SGD.
  • Slight rise in portfolio occupancy rate to 96.3% in Mar 17, from 96.2% in Mar 16.
My confidence in their recent acquisitions in Australia and Vietnam has been rewarded, as these properties have been fully leased and are contributing well to the overall Net Property Income. I also like MLT's strategy to divest the old warehouse in Toh Guan, given its limited potential for re-development into a modern facility. The money from the sale can then be reinvested in other warehouses with greater potential. Overall, I still find MLT's business to be well-managed and a quality investment. 
So what’s next? I saw this article on Colliers International for USA and thought that it could potentially serve as a guide for the future Asia-Pacific region.
 
Extracted from: Colliers International, Knowledge Leader
As the e-commerce in the Asia-Pacific region is expected to keep growing, my view is that this would likely to continue fuel the demand for warehouse spaces in the next few years.💪 What do you think?
Together, let us all Go & Huat ah!
GoHuat

Related Posts

0 comments:

Post a Comment

Feel free to drop your comments here!