Mapletree Logistics Trust ("MLT") announced its 1Q FY16 (Y/E Mar) results on 20 July after trading hours. We tuned in to the Analyst Briefing conference call the following morning.

Analyst briefing key takeaways

Upcoming supply of warehouse space in Singapore will challenge rental reversions overall. But positive rental reversions for some properties within the portfolio are still possible.

NPI margin expected to be stable. In the wake of conversions from single-user assets (SUA) to multi-tenanted buildings (MTB), NPI margins are expected to be stable at c.83% to 84%, and should not go lower than 80%.

Portfolio WALE expected to be lower going forward, as SUAs within the portfolio are being converted to MTBs. This is because MTBs typically have a shorter lease compared to SUAs.

No recent acquisitions in China, but it remains a key market for MLT. The China properties in the Sponsor's ROFR portfolio will be potential targets after they have stabilised. Meanwhile, the Manager has strengthened the team's manpower to look into the China market.

Investment Action

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

Source: Phillip Securities Research - 23 Jul 2015