Mapletree Logistics Trust DPU declines by 8.9% - Our Quick Take

Summary of Mapletree Logistics Trust's 1Q FY24/25 results

Mapletree Logistics Trust (MLT) reported its results and dividends for the first quarter fiscal year 24/25 (1Q FY24/25) for the quarter ending 30th June 2024. 

• Mapletree Logistics Trust's 1Q FY24/25 distribution per unit (DPU) fell 8.9% year-on-year to 2.068 cents, compared to 2.271 cents in 1Q FY23/24. 
• This translates to an annualized yield of 6.1%.
• Mapletree Logistics Trust's 1Q FY24/25 DPU also fell 6.5% compared to the DPU of 2.211 cents in the previous quarter. 

Source: Mapletree Logistics Trust

Revenue and net property income were little changed compared to the previous year.. 

Mapletree Logistics Trust's portfolio occupancy fell slightly to 95.7% in 1Q FY24/25 from 96.0% in 4Q FY23/24. 

It's average rental reversion also moderated to +2.6% in 1Q FY24/25 from +2.9% in 4Q FY23/24. 

Mapletree Logistics Trust's borrowing costs rose 9.4% year-on-year to S$38.4 million in 1Q FY24/25. The higher borrowing costs was driven by higher average interest rate. 

Its gearing also rose to 39.6% from 38.9% in 4Q23/24, due to incremental borrowings to fund acquisitions made in the quarter, and partly offset by loan repayments with proceeds from divestments. 

Mapletree Logistics Trust's Interest Coverage Ratio was maintained at 3.1x in 1Q24, unchanged from the previous quarter. 

During 1Q FY24/25, Mapletree Logistics Trust completed the acquisitions from its sponsor of three Grade A assets in Malaysia and Vietnam.

Mapletree Logistics Trust also completed the divestments of two properties in Malaysia and Singapore for approximately S$18.0 million and announced the divestments of another two properties in Singapore and China with a combined value of approximately S$26.9 million. 

Beansprout's take on Mapletree Logistics Trust's 1Q FY24/25 results

The decline in DPU in 1Q24 compared to the previous year and previous quarter may be disappointing to investors. 

Management of Mapletree Logistics Trust remains cautious on the outlook of China, noting that negative rental reversions are expected to persist.

At the same time, higher borrowing costs and continued regional currency depreciation against the Singapore Dollar are expected to weigh on Mapletree Logistics Trust's financial performance in the coming quarters.

Mapletree Logistics Trust currently trades at a price-to-book valuation of 1.0x, and is expected to offer a forward dividend yield of 6.7%.

Dive deeper into the Mapletree Logistics Trust with our checklist and find out if it may be worthwhile adding the REIT to your watchlist. 

To learn more about our outlook on Singapore REITs, read our detailed report on "Singapore REITs - Distributions may remain under pressure"

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Related links:

• Mapletree Logistics Trust share price and share price target
• Mapletree Logistics Trust dividend forecast and dividend history

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