Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Thematic (Sector/Industry)

<h2>Singapore</h2><h3><a href="https://www.smartkarma.com/entities/mapletree-logistics-trust" target="_blank" data-smartkarma-citation="entities:16035" rel="noopener">Mapletree Logistics Trust (MLT SP)</a> to acquire Australian cold storage facility at 4.3% yield; Fully-funded by debt, DPU accretive</h3><ul><li>MLT proposed an acquisition of a cold storage facility at 5-17 Leslie Road and 6-10 Pipe Road in Melbourne, Victoria, Australia for A$42.8m (S$42.8m) vs. independent valuation of A$43.0m as at 21Jun21. Including A$3.1m transaction-related costs, the total transaction costs will be A$45.9m</li><li>The freehold property is located within the inner west precinct of Melbourne, an established industrial and logistics region in the vicinity of MLT’s existing four properties. Spanning a total NLA of 14,747sqm, the property is comprised of five blocks of cold and freezer warehouse (77% of NLA), ambient warehouse, office and other amenities. The property is 100% leased to Austco Polar Cold Storage, a wholly-owned subsidiary of ASX-listed Wingara AG Limited, for the next 13 years with annual rent escalations</li><li>The asset is expected to generate an initial NPI yield of 4.3% (based on purchase price) and will be accretive at the distribution level. The acquisition will be 100% funded by debt and is expected to be completed by 3Q22. Upon completion and including the proposed acquisition of 9 Changi South Street 2 (announced on 9Jul21), MLT’s aggregate leverage ratio is estimated to rise to 38.7%</li><li>Following this Acquisition, MLT will have five logistics assets in Melbourne and a total of 13 assets in AUS with over A$870m in AUM (8.5% of AUM from 8.0%) and 352,400sqm of leasable space. Contribution from AUS will increase from 7.4% of GRI to 8.5%</li><li>MLT is currently trading at 4.2% FY22E yield and 1.6x P/B.</li></ul><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/223/820/original/image_45736139921629083801234.png?1629083809" class="editor-image img-responsive" data-smartkarma-image-id="223820"></figure>

SingaporeMapletree Logistics Trust (MLT SP) to acquire Australian cold storage facility at 4.3% yield; Fully-funded by debt, DPU accretiveMLT proposed an acquisition of a cold storage facility at 5-17 Leslie Road and 6-10 Pipe Road in Melbourne, Victoria, Australia for A$42.8m (S$42.8m) vs. independent valuation of A$43.0m as at 21Jun21. Including A$3.1m transaction-related costs, the total transaction costs will be A$45.9mThe freehold property is located within the inner west precinct of Melbourne, an established industrial and logistics region in the vicinity of MLT’s existing four properties. Spanning a total NLA of 14,747sqm, the property is comprised of five blocks of cold and freezer warehouse (77% of NLA), ambient warehouse, office and other amenities. The property is 100% leased to Austco Polar Cold Storage, a wholly-owned subsidiary of ASX-listed Wingara AG Limited, for the next 13 years with annual rent escalationsThe asset is expected to generate an initial NPI yield of 4.3% (based on purchase price) and will be accretive at the distribution level. The acquisition will be 100% funded by debt and is expected to be completed by 3Q22. Upon completion and including the proposed acquisition of 9 Changi South Street 2 (announced on 9Jul21), MLT’s aggregate leverage ratio is estimated to rise to 38.7%Following this Acquisition, MLT will have five logistics assets in Melbourne and a total of 13 assets in AUS with over A$870m in AUM (8.5% of AUM from 8.0%) and 352,400sqm of leasable space. Contribution from AUS will increase from 7.4% of GRI to 8.5%MLT is currently trading at 4.2% FY22E yield and 1.6x P/B.

<h2>Singapore</h2><h3>SREITs results in a glance (see detailed spreadsheet and calendar attached)</h3><table class="table table-striped"><tbody><tr><td style="width: 363.047px;"><p> </p></td><td style="width: 362.953px;"><p>MLT</p></td></tr><tr><td style="width: 363.047px;"><p>Period</p></td><td style="width: 362.953px;"><p>1Q22</p></td></tr><tr><td style="width: 363.047px;"><p>Gross Revenue (S$ m)</p></td><td style="width: 362.953px;"><p>163.7 (+23.7% YoY)</p></td></tr><tr><td style="width: 363.047px;"><p>NPI (S$ m)</p></td><td style="width: 362.953px;"><p>144.2 (+21.3% YoY)</p></td></tr><tr><td style="width: 363.047px;"><p>DPU (S$ c)</p></td><td style="width: 362.953px;"><p>2.161 (+5.7% YoY)</p></td></tr><tr><td style="width: 363.047px;"><p>NAV per Unit (S$)</p></td><td style="width: 362.953px;"><p>1.32</p></td></tr><tr><td style="width: 363.047px;"><p>P/B (x)</p></td><td style="width: 362.953px;"><p>1.59</p></td></tr><tr><td style="width: 363.047px;"><p>Occupancy (%)</p></td><td style="width: 362.953px;"><p>97.8</p></td></tr><tr><td style="width: 363.047px;"><p>Reversion (%)</p></td><td style="width: 362.953px;"><p>2.2</p></td></tr><tr><td style="width: 363.047px;"><p>Gearing (%)</p></td><td style="width: 362.953px;"><p>38.2</p></td></tr><tr><td style="width: 363.047px;"><p>Cost of Debt (%)</p></td><td style="width: 362.953px;"><p>2.2</p></td></tr><tr><td style="width: 363.047px;"><p>1 Yr Fwd Yield (%)</p></td><td style="width: 362.953px;"><p>4.14</p></td></tr><tr><td style="width: 363.047px;"><p>Debt Hedged (%)</p></td><td style="width: 362.953px;"><p>75%</p></td></tr><tr><td style="width: 363.047px;"><p>Target Price</p></td><td style="width: 362.953px;"><p>NA</p></td></tr><tr><td style="width: 363.047px;"><p>Rating</p></td><td style="width: 362.953px;"><p>NA</p></td></tr></tbody></table>

SingaporeSREITs results in a glance (see detailed spreadsheet and calendar attached) MLTPeriod1Q22Gross Revenue (S$ m)163.7 (+23.7% YoY)NPI (S$ m)144.2 (+21.3% YoY)DPU (S$ c)2.161 (+5.7% YoY)NAV per Unit (S$)1.32P/B (x)1.59Occupancy (%)97.8Reversion (%)2.2Gearing (%)38.2Cost of Debt (%)2.21 Yr Fwd Yield (%)4.14Debt Hedged (%)75%Target PriceNARatingNA

ASEAN Builder's Scoop (21Jul21) - MLT Steady Occ and Reversions Support 1.6x P/B

<h2>Singapore</h2><h3><a href="https://www.smartkarma.com/entities/mapletree-logistics-trust" target="_blank" data-smartkarma-citation="entities:16035" rel="noopener">Mapletree Logistics Trust (MLT SP)</a> looks to acquire a Changi logistics property for S$24.5m; Stabilized NPI yield of ~6.2% </h3><ul><li>MLT has been granted an option to acquire 9 Changi South Street 2 from RSH Holdings for a purchase price of S$24.5m (vs. independent valuation of S$24.6m as at 25Jun21). The property, a purpose-built facility comprising a part 3-storey, part 4-storey temperature-controlled warehouse with ancillary office and other amenities, has a GFA of 11,506sqm. It is located at a prime location and a relatively long remaining land tenure of ~33.3 years. The property is also adjacent to its existing property at 15 Changi South Street 2, thus presenting the opportunity for potential economies of scale</li><li>Its favourable location should attract demand from industries involved in high-value and time-sensitive goods such as electronics and pharmaceutical, as well as e-commerce firms and third-party logistics players (“3PLs”) looking to expand in the Changi South/East region. The Property will be sold with vacant possession and the Manager is in talks with an international 3PL to lease it as the anchor tenant</li><li>The Proposed Acquisition is subject to, among others, approval from JTC Corporation and exercise of the OTP by MLT. The total purchase consideration of S$27.2m (including transaction costs of c.S$2.7m) will be funded by debt and is expected to be completed by 3QFY21/22</li><li>Upon completion, MLT’s aggregate leverage ratio will be ~38.5%, while MLT’s total portfolio will comprise 164 properties with total AUM of S$10.8bn. The proposed acquisition is expected to generate a stabilised NPI yield of ~6.2% based on the purchase price and initial land premium, and it is also expected to be DPU accretive.</li></ul>

SingaporeMapletree Logistics Trust (MLT SP) looks to acquire a Changi logistics property for S$24.5m; Stabilized NPI yield of ~6.2% MLT has been granted an option to acquire 9 Changi South Street 2 from RSH Holdings for a purchase price of S$24.5m (vs. independent valuation of S$24.6m as at 25Jun21). The property, a purpose-built facility comprising a part 3-storey, part 4-storey temperature-controlled warehouse with ancillary office and other amenities, has a GFA of 11,506sqm. It is located at a prime location and a relatively long remaining land tenure of ~33.3 years. The property is also adjacent to its existing property at 15 Changi South Street 2, thus presenting the opportunity for potential economies of scaleIts favourable location should attract demand from industries involved in high-value and time-sensitive goods such as electronics and pharmaceutical, as well as e-commerce firms and third-party logistics players (“3PLs”) looking to expand in the Changi South/East region. The Property will be sold with vacant possession and the Manager is in talks with an international 3PL to lease it as the anchor tenantThe Proposed Acquisition is subject to, among others, approval from JTC Corporation and exercise of the OTP by MLT. The total purchase consideration of S$27.2m (including transaction costs of c.S$2.7m) will be funded by debt and is expected to be completed by 3QFY21/22Upon completion, MLT’s aggregate leverage ratio will be ~38.5%, while MLT’s total portfolio will comprise 164 properties with total AUM of S$10.8bn. The proposed acquisition is expected to generate a stabilised NPI yield of ~6.2% based on the purchase price and initial land premium, and it is also expected to be DPU accretive.

ASEAN Builder's Scoop (12Jul21) - MLT Acquires Changi Logistics at 6.2% Yield

Singapore

Mapletree Logistics Trust is an Asia-focused logistics real estate investment trust. The Company invests in a diversified portfolio of income-producing real estate which is used for logistics purposes.

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Mapletree Logistics Trust (MLT SP)

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