Thankfully for unitholders, the REIT has been responsible with ensuring a lot of its debt load in on fixed rates.
As of 31 December 2022, 83% of its total debt – of S$4.9 billion – was hedged or drawn in fixed rates.
Meanwhile, around 79% of the amount distributable over the next 12 months has been hedged into, or is derived in, Singapore dollars.
6. Gearing ratio rises slightly
For any REIT, the leverage ratio is important and in Mapletree Logistics Trust’s case, its gearing ratio is 37.4%.
That’s comfortably under the 50% MAS-imposed cap but it’s also slightly higher than the 37.0% gearing ratio it had at the end of September 2022.
7. Weighted average annualised interest rate increases
Higher interest rates have impacted all Singapore REITs. For Mapletree Logistics Trust, its weighted average annualised interest rate – as of 31 December 2022 – was 2.6%.
While still relatively low versus peers, it was up 10 basis points (bps) from the 2.5% weighted average annualised interest rate it recorded at the end of September 2022.
8. Divestments on track
The logistics REIT has announced over the past month that it would be divesting three properties; one in Singapore (at 3 Changi South) and two in Malaysia.
These divestments are set to help Mapletree Logistics Trust redeploy capital towards investments in more modern facilities with better specs.
All properties were sold at a premium to to independent valuation. The Singapore property divestment is on track to be completed in Q4 FY22/23 while the sale of the Malaysia properties will completed in H1 FY23/24.
Stable showing from key STI REIT
There were no real surprises in the latest quarterly earnings from Mapletree Logistics Trust. It was another solid showing in what’s a challenging operating environment.
Management did note in the release that it would continue to focus on cost management and value-add opportunities via asset enhancements and divestments, while also looking at growth opportunities to strengthen its portfolio.
The REIT’s distribution (or dividend) will be paid out to shareholders on 13 March, 2023. The record date, to be eligible for the distribution, will be 31 January 2023.
As its current price, Mapletree Logistics Trust is offering investors a 12-month forward dividend yield of 5.4%.
Disclaimer: ProsperUs Head of Content & Investment Lead Tim Phillips owns shares of Mapletree Logistics Trust.
Tim, based in Singapore but from Hong Kong, caught the investing bug as a teenager and is a passionate advocate of responsible long-term investing as a great way to build wealth.
He has worked in various content roles at Schroders and the Motley Fool, with a focus on Asian stocks, but believes in buying great businesses – wherever they may be. He is also a certified SGX Academy Trainer.
In his spare time, Tim enjoys running after his two young sons, playing football and practicing yoga.