Mapletree Logistics Trust DPU rises 1% YoY in Q3 FY2021

Analysts are positive on the company’s latest results.

Mapletree Logistics Trust (MLT) has recorded a 1% YoY increase in distribution per unit (DPU) to $2.065 for Q3 FY2021 which ended in December 2020 on an enlarged unit base, following its equity fundraising during the quarter.

According to Maybank Kim Eng, this is due to higher rental income and earlier acquisitions offsetting its divestments and provisions for rental relief.

Meanwhile, gross revenue and net property income also jumped 15.5% and 14.9% to $139.9m and $124.7m, respectively.

This is driven by higher revenue from existing properties and contribution from acquisitions and redevelopment properties partially offset by rental rebates granted to eligible tenants, OCBC Investment Research noted.

With the company’s latest results and outlook, analysts are also optimistic for the trust.

OCBC Investment Research analysts keep their “buy” recommendation on MLT with an increased fair value estimate of $2.17 from $2.12 previously.

“Although MLT will not be immune to a weaker macroeconomic backdrop, we expect it to remain relatively more resilient vis-à-vis its peers, and also see MLT as a key beneficiary of the structural shift towards more robust e-ecommerce growth trends ahead,” OCBC analysts noted.

They added that MLT’s recent share price underperformance is a buying opportunity for investors with a medium to longer-term horizon.

Maybank Kim Eng analyst Chua Su Tye also maintained his “buy” rating for MLT with the 12-month target price unchanged at $2.40 and named the stock as one of his top S-REIT picks.

“Our forecasts are unchanged and we expect its occupancies to remain resilient due to steady demand growth,” Chua said.

Chua added that MLT’s growing APAC-focused assets under management is well-positioned to capture the sector’s multiple structural growth themes such as rising e-commerce demand and
supply chain diversification, which have been accelerated by the pandemic.

MLT noted that whilst the global economy is projected to recover over the course of 2021, the recent resurgence of COVID-19 infections and renewed lockdowns in several countries may hamper the pace of economic recovery.

“While overall leasing demand for warehouse space in MLT’s markets has stayed relatively resilient to-date, management is working with a few customers to support them. Overall, MLT’s operations remain stable,” the company said in a press release.