Mapletree Logistics Trust: 4Q15 DPU dipped 2% y/y to 1.85¢, bringing full year DPU to 7.5¢, on the lower end of street forecasts. Distributable income was shaved 1% to $45.9m.
Revenue rose 6% to $84.7m, while NPI increased 3% to $70.3m, from higher contributions from six properties acquired in China, Singapore, Malaysia and Korea during the financial year, offset by lower occupancy in several conversions of single user properties to multi-tenanted in Singapore and absence of revenue from 5B Toh Guan Road East, which is undergoing AEI.
For the year, HK and Singapore helped MLT achieve positive average rental reversion of 8%.
Portfolio occupancy stood at 96.7% (-0.2ppt q/q) with WALE of 4.3 years.
Aggregate leverage stood at 34.3%, with weighted average annualized interest of 2.1%. 80% of debt is fixed-rate.
On outlook, 24% of leases are renewable in FY16, of which 10% constitute single-user buildings. Some of these could be converted into multi-tenanted buildings, especially in Singapore. Such transition will pressure DPU as expenses rise and occupancy dips during the transition.
Meanwhile, AEI at 5B Toh Guan Road East should be completed in early FY17, while redevelopment at 76 Pioneer Road will commence this year. These projects should not materially impact FY16 DPU.
In Hong Kong (14.9% revenue), rentals and occupancies should be buoyed by a supply shortage.
MLT is currently trading at 1.2x P/B, and trading at 5.9% annualized 4Q15 yield.
Latest broker ratings:
CIMB maintains Hold with TP of $1.30
OCBC maintains Hold with TP increased to $1.14 from $1.12
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