Broker maintains buy on Mapletree Logistics due to resilient balance sheet

The logistics trust posted 2.227 cents of distribution per unit.

Mapletree Logistics Trust (MLT) posted 2.227 Singapore cents in the third quarter of 2023 fiscal year, UOBKayHian said. 

In a report, the analyst said the MLT’s revenue and net property income went up 8% and 7.3% respectively, supported by growth from existing properties and acquisitions completed in the first quarter of fiscal year 2023 and 2022.

The portfolio occupancy improved 0.5% quarter-on-quarter to 96.9%, driven by Singapore, China, and Japan. 

“Broad-based positive rental reversion was achieved across most markets, with an aggregate leverage of 37.4%,” read the report.

MLT seeks to continue growing through capital recycling and redevelopments and has a resilient balance sheet with an average debt duration of 3.6 years and a distribution yield of 5.6% for FY23. 

UOBKayHian maintains a “buy" rating for MLT with a target price of $1.99.