Brokers' take

Mapletree Logistics Trust | Buy Target price: S$1.50 Oct 23 close: S$1.23 DBS Equity Research, Oct 23

Mapletree Logistics Trust (MLT)'s Q2 2019 gross revenues and net property income grew by 13.8 per cent and 14.6 per cent year on year to S$106.6 million and S$90.2 million, respectively, as improved performance and past acquisitions helped offset the absence of income from the divestment of five properties in FY 2018 and Q1 2019 and the weakness in the Australian dollar. Q2 2019 distribution per unit and 1H 2019 operational performance tracking are in line with estimates.

MLT's portfolio occupancy crept up to 97.6 per cent versus 95.7 per cent in Q1 2019, mainly on the back of lease-up of space in China. Positive rental reversions averaged 1.3 per cent in Q1 2019, mainly from Hong Kong and Vietnam. Singapore remained fairly flat, while other markets like China and Korea saw a slight uptick.