|Bid||1.4500 x 0|
|Ask||1.4600 x 0|
|Day's range||1.4400 - 1.4600|
|52-week range||1.1800 - 1.5300|
|Beta (3Y monthly)||0.45|
|PE ratio (TTM)||11.15|
|Earnings date||21 Jul 2017 - 24 Jul 2017|
|Forward dividend & yield||0.06 (4.14%)|
|1y target est||1.36|
Institutional investors can give investors ideas. Here are two REITs institutions have been buying recently in Singapore.
Three slides from Mapletree Logistics Trust (SGX: M44U) on its latest results, lease profile and occupancy rates.
SINGAPORE (Apr 30): Analysts like Mapletree Logistics Trust (MLT) given its positive 4Q19 results, stable CWT situation and capital recycling strategy.See: Analyst sentiments on Mapletree Logistics Trust turn lukewarm due to valuationsThe manager of MLT on Apr 26 announced that its 4Q19 DPU of 2.024 cents, 4.5% y-o-y , as the amount distributable to unitholders increased by 23.8% y-o-y to $73.3 million.Gross revenue for the quarter came in at $121.4 million, 13.0% higher than $107.5 million a year ago, bringing net profit income (NPI) to $105.0 million, 15.0% higher than the year before.On a final year basis, FY19 DPU was 7.941 cents, 4.2% higher than 7.618 cents in FY18.See: MLT posts 4.5% rise in 4Q DPU to 2.024 cents on higher revenueFollowing the results announcement, DBS Group Research is keeping its “buy” call on MLT with a higher target price of $1.60 from $1.50 previously.In a Monday report, lead analyst Derek Tan says, “We believe that all growth engines are firing and MLT remains firmly on the acquisition growth path.”The trust’s 4Q19 results have indicated that the worst is over and most of its major markets continue to offer organic growth while the manager remains to be on the lookout for more value-accretive acquisitions.“Our TP of $1.60 is above consensus and we believe the street has not factored the REIT’s potential to surprise on the upside organically and through more acquisitions. MLT, through its focus in its key markets of Hong Kong, Singapore, Japan and Australia, offers stronger income visibility and growth than before,” says Tan.Tan believes that well-timed acquisitions and ongoing asset reconstitution strategy will augment a steady DPU growth profile for MLT of 1-4% over FY20-21, with upside from potential gains that the manager will typically share when it happens. He has assumed $500 million of acquisitions in FY20.Meanwhile, the analyst believes that the current CWT situation is manageable, as the manager has noted that CWT Limited is prompt in rental payments and it is monitoring the situation closely. Also, the rent payable by CWT Limited is at current market rate, implying that in the worst case scenario, Tan does not foresee any major downside to distributions.On the other hand, OCBC Investment Research continues to rate MLT “hold” with a decreased target price of $1.38 from $1.45 previously.MLT’s results were in-line with the research house’s expectations. And operationally, MLT achieved average rental reversions of +2% in FY19, driven by Hong Kong, Vietnam and China. Porfolio occupancy also remained firm at 98.0%.Despite CWT International (the parent company of CWT Limited) defaulting on its loans and lenders seizing company assets, including its stake in CWT Limited, management has reiterated that it is still business as usual for CWT Limited, with no rental arrears or defaults. See: HNA unit's lenders seize assets as payment deadline missedIt also appears that the receiver has no intention to disrupt CWT Limited’s operations for now.Moreover, MLT has also received queries from other 3PLs providers expressing an interest to take over CWT Limited’s operations if available.Meanwhile, MLT recorded a revaluation gain of $203.0 million for its investment properties in FY19, due to cap rate compression across most of its markets ranging from 10 to 110 basis points (bps) (Vietnam) on a weighted average basis.Management continued its active capital recycling activities, the latest being the divestment of five of its properties in Japan. The divestment gain of $8.5 million is expected to be distributed to unitholders over eight quarters from 1Q20.As at 11.40am, units in MLT are trading at $1.47 or 19.7 times FY20 earnings with a distribution yield of 5.4%.
In this article, we will look at 10 key points from Mapletree Logistics Trust’s (SGX: M44U) latest result announcement.
SINGAPORE (April 29): CGS-CIMB Research is downgrading its call on Mapletree Logistics Trust (MLT) from “add” to “hold” due to high valuations of 1.3 times price-to-book and a 5.4% yield, as well as the risk of a default from CWT.The research house has raised its price target to $1.48 from $1.44 after tweaking forecasts to factor in MLT’s recent Japan divestments, on top of lower risk-free and terminal growth rates to account for a more dovish interest rate sentiment.Meanwhile, Maybank Kim Eng is maintaining its “hold” call on the trust with an unchanged price target of $1.40.In a report on Saturday, CGS-CIMB analyst Lock Mun Yee says the potential default of CWT tenancies could cause an overhang on MLT.“CWT contributed to 9.2% of gross revenue from the five ramp-up properties in Singapore bought in Jul 18. While CWT continues to pay rents, MLT currently holds security deposits of six months of rental in relation to these leases,” notes Lock.“We understand that about 1/3 of the space is taken up by end users and there are plans to novate these underlying leases over to MLT. For the remaining space, MLT mentioned that it has received enquiries from other third-party logistics providers,” she adds.The analyst nonetheless likes MLT for its latest divestment of five properties in Japan, as she believes the divestment gains could be distributed to unitholders with some of the proceeds being recycled into newer Japanese assets developed by its sponsor in due course.Maybank analyst Chua Su Tye however prefers Ascendas REIT (AREIT), which he rates “buy” with a target price of $3.10, over MLT as the former trust trades at a similar 5.6% yield, but offers stronger DPU growth of 3.5% three-year CAGR, as well as a comparatively stronger balance sheet for acquisitions. He sees limited downside risks for MLT considering “keen leasing interest” from third-party logistics providers (3PLs) for its CWT properties, but lowers his estimates 2-3% due to slightly weaker China growth assumptions.Commenting on MLT’s recent set of 4Q results, the analyst reiterates his view that the trust’s logistics assets have stablised although growth has slowed due to a larger base.“We believe demand for newer high-specs logistics properties in Singapore will remain tight due to expansion activities (Amazon, etc). Management indicates keen leasing interest from 3PLs for its CWT-related properties, especially for 6 Fishery Port,” says Chua. As at 11:42am, units in MLT are trading flat at $1.48, which implies a 5.6% FY20E DPU yield according to Maybank estimates.
Here are five things investors of Mapletree-sponsored REITs should know about Mapletree Pte Ltd.
SINGAPORE (Mar 7): OCBC Investment Research continues to rate Mapletree Logistics Trust (MLT) a “buy” with a fair value estimate of $1.50.Among the Singapore REITs (S-REITs) sector, MLT is the third best performing counter. YTD, the trust has delivered total returns of 14.4%, higher compared to the FTSE ST REIT Index and STI that have generated 10.2% and 5.2% of total returns YTD, respectively.In a Thursday report, analyst Andy Wong Teck Ching says, “We continue to like MLT for its resilient portfolio, strong management team and potential for further capital recycling activities to unlock value for unitholders.”“We roll forward our valuations, and also ascribe a lower cost of equity assumption of 7.5% to take into account a more conducive interest rate environment, but partially offset this by incorporating a more conservative terminal growth rate assumption of 2%,” adds Ching.In 2015, the trust first penetrated in the Australian logistics sector, and as at Dec 31, 2018, it has 8.3% of its property asset value contributed from there.Despite concerns over headwinds surrounding economic growth Down Under, the analyst believes that the fundamentals of the logistics sector remains to be largely healthy.Meanwhile, the CEO of Australia-listed Goodman Group has stressed that structural change in e-commerce globally will drive the logistics sector, and that industrials are under-represented in most institutional portfolios. He also expects to see more growth in the next three to five years.Similarly, CBRE also opined that the e-commerce sector in Australia is set to inject about 350,000 sqm of additional new supply into industrial and logistics space market in Australia from 2019 to 2022. And as more firms aim for same-day delivery, there would be a surge in demand for logistics spaces in prime locations near consumers.As at 4.20pm, units in MLT are trading at $1.42 or 18.2 times FY19 earnings with a DPU yield of 5.6%.
SINGAPORE (Jan 25): UOB Kay Hian is reiterating its “hold” recommendation on Mapletree Logistics Trust (MLT) with a target price of $1.39. Similarly, Maybank Kim Eng has a “hold” call on CCT, while OCBC Investment Research has a “buy” call. This came on the back of MLT on Monday announcing a 5.0% increase in its 3Q18/19 DPU to 2.002 cents, compared to 1.907 cents in 3Q17/18, bringing 9M18/19 DPU to 5.917 cents, 4.2% higher than 5.681 cents in 9M17/18.
SINGAPORE (Jan 23): Mapletree Logistics Trust (MLT) reported 3Q19 gross revenue and Net Property Income (NPI) jumped 23% and 25.9% y-o-y to $120.8 million and $104.5 million, respectively. This was driven by organic growth, contribution from the completed redevelopment of Mapletree Ouluo Logistics Park Phase 1 and acquisitions. DPU grew at a smaller 5% y-o-y to 2.002 cents as a result of higher borrowing costs and a larger unit base. In a Tuesday report, OCBC Investment Research analyst Wong Teck Ching says MLT reported a strong set of 3Q19 results which was the strongest y-o-y growth delivered by MLT since 1QFY15 and met the research house’s expectations. On a 9M19 basis, MLT’s NPI rose 17.3% to $284.5 million which constituted 73.5% of OCBC’s FY19 forecast. DPU of 5.917 cents also represented growth of 4.2%, which accounted for 74.6% of OCBC’s full-year projection. Besides MLT’s healthy DPU growth, Wong says rental reversions also gathered pace during the quarter, driven largely by Hong Kong, China, Singapore and Vietnam. Its portfolio occupancy held firm at 97.7%, with only China recording a dip in occupancy rates from 98.3% to 95.8%. While already having a presence in Australia, MLT made its maiden entry into the Brisbane logistics market with the acquisition of the Coles Distribution Centre warehouse with an expected NPI yield of 5.7% on Nov 28 2018. It also completed the acquisition of Wonjin Logistics Centre in South Korea with an expected initial NPI yield of 6.5%. In addition, MLT had also entered into an agreement with Unilever International to acquire a warehouse in Vietnam-Singapore Industrial Park I, Binh Duong province, Vietnam for $43 million, which is expected to generate an initial NPI yield of 8.3%. “Incorporating these acquisitions, we raise our FY19 and FY20 DPU forecasts by 0.2% and 2.2%, respectively, and consequently our fair value estimate from $1.37 to $1.40,” says Wong. OCBC is maintaining MLT at “buy” with $1.40 fair value with FY19F DPU yield of 5.6%. Meanwhile, Maybank KimEng analyst Chua Su Tye expects 4Q to be lifted by further contribution from its acquisition of five Singapore properties that was completed on Sept 28 2018. In a Tuesday report, Chua says portfolio occupancy was steady at 97.7% with q-o-q improvements across Singapore, Hong Kong and South Korea. Its China properties reported lower occupancies, as JD.com downsized its space needs but this should improve in subsequent quarters from backfilling efforts from SMEs at higher rentals. In Hong Kong, reversions are expected to remain positive while the outlook for Japan is to remain stable with demand in Australia supported by domestic consumption and demand in Vietnam staying robust over the next 6-12 months by spillover gains from the ongoing China-US trade conflict. MLT remains optimistic on the Chinese logistics market, but will be selective on deals and cautious on the performance of its older assets in Singapore and S.Korea. Demand for newer high-specs logistics properties in Singapore however remain tight against expansion activities including by the likes of Amazon. Maybank has a “hold” on MLT with $1.30 target price and FY19E DPU yield of 6.1%. As at 3.26pm, units in MLT are down 1 cent at $1.33.