Mapletree Logistics Trust

Mapletree Logistics Trust (MLT): Mapletree Logistics Trust (MLT) 1QFY15 distributable income and DPU rose 6% y/y to $46.6m and 1.9¢, while gross revenue improved 7% to $81m and NPI gained 6% to $69m, due to higher contribution from Mapletree Benoi Logistics Hub, 12% positive reversions from Hong Kong and Singapore assets, contribution from a property in Korea acquired in 2QFY14 and higher revenue from four Japan properties after the installation of solar panels last year. Overall portfolio occupancy across MLT's 112 properties dipped 0.7ppts to 97.6%, with weighted average lease to expiry of 4.7 years. Aggregate leverage increased 0.1ppts to 33.4%, at an overall interest cost of 2.0% and debt term of 3.4 years. Separately, MLT proposed to acquire Mapletree Zhengzhou Logistics Park for Rmb205.6m ($41.1m), a 79,000 sqm gfa site located in Zhengzhou, China. Current tenant base at the 99.2% occupied single-storey warehouse includes reputable local and international 3PLs- Deppon Logistics, Menlo Worldwide and Henan Shangchu Logistics, and end-user Dennis Logistics. The DPU-accretive acquisition is expected bring NPI yield of 8% and gearing to 34.5% (+1.1ppts) upon completion. At $1.44, MLT trades at 1.5x P/B and 1QFY15 annualized yield of 5.3%, lower than industrial REIT average of 7.1%.