Jefferies analyst Krishna Guha has maintained his “buy” call on Mapletree Logistics Trust, following its 4QFY2022 earnings on April 28.
In his May 3 note, Guha acknowledges that there are concerns that the REIT’s properties in China might suffer from the broader economic slowdown. He also notes that half of MLT’s revenue is exposed to currencies that are depreciating: Japanese yen, Australian dollar and RMB.
Furthermore, valuation remains demanding, yielding 5% now – some 40 to 60 basis points lower than industrial peers.
“However, steady execution, growing regional footprint and attractive sector positioning keep us at ‘buy’,” writes Guha, where he raised his target price to $2 from $1.95.
For 4QFY2022 ended March 2022, MLT reported net property income and revenue that increased by 14.9% and 16.5% y-o-y respectively, thanks to higher revenue from existing properties as well properties more recently acquired.
For the whole of FY2022, net property income and revenue were up by 18.6% and 20.9% respectively. Distribution per unit, however, grew by a slower pace of 12% y-o-y because of a larger base of units.
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In 4QFY2022, portfolio occupancy was 96.7%, down slightly from 98.7% in the preceding quarter.
MLT managed to achieve a rent reversion of 2.9% across its portfolio.
As at March 31, MLT has a portfolio of 183 properties across the region worth $13.1 billion.
MLT last traded at $1.79.
