Mapletree Logistics Trust ("MLT") announced its Full Year FY 2015 (Y/E Mar) results on 20 April after trading hours. We attended the Analyst Briefing on 21 April morning.

Analyst briefing key takeaways

Double-digit rental reversions achieved in Hong Kong during 4Q, due to shrinking supply. Rental reversion in Hong Kong was about 20% for the 4Q period. This came about due to the trend of Industrial land being converted to Commercial and Residential use, resulting in limited supply.

Tenant composition: Expect more multi-tenanted buildings (MTBs) to single-user assets (SUAs). Composition is now 49% SUA to 51% MTB by Revenue. As SUAs get progressively converted to MTBs, the composition will tilt towards MTB. The Manager guided that portfolio weighted average lease expiry (WALE) may not necessarily be reduced. Mitigating factors include master-tenants that lock in a longer lease, as well as leases with option to extend after the first term.

Geographical exposure: From 2-country to 4-country. Portfolio Revenue is currently weighted towards Singapore (45.1%) and Japan (18.6%). The Manager guided that portfolio Revenue will see greater contributions from Hong Kong and China, as that is where it sees opportunities to enlarge the portfolio.

Investment Action

No stock rating or target price provided, as we do not have coverage on MLT.

Source: Phillip Securities Research - 22 Apr 2015