Mapletree Investments Pte Ltd have 3 REITs listed in the Singapore Exchange – Mapletree Industrial Trust (SGX:ME8U), Mapletree Logistics Trust (SGX:M44U), and Mapletree Pan Asia Commercial Trust (SGX:N2IU).

All the 3 REITs share the following similarities: (i) they are constituents of Singapore’s benchmark Straits Times Index (STI), (ii) the management declares a distribution (or dividend, but in REITs it is known as ‘distribution’) once every quarter, and (iii) they have their financial year ending every 31 March.

With all 3 of them already released their results for the third quarter, and for the first 9 months of the financial year ended 31 December 2022 (you can check out my review of Mapletree Logistics Trust’s result here, Mapletree Industrial Trust’s results here, and Mapletree Pan Asia Commercial Trust’s results here), what I’ll be doing is to put the statistics (its financial performance, portfolio occupancy and debt profile, as well as its distribution payout to unitholders) side-by-side to do a comparison. On top of that, I’ll also be putting the 3 REITs’ current valuations (based on their unit prices at the time of writing of this post) side-by-side to find out which is the ‘cheapest’, and which is the ‘most expensive’, and finally, a summary of the strengths and weaknesses of each Mapletree REIT.

Let’s begin:

Profile of the 3 Mapletree REITs

Mapletree Logistics Trust’s portfolio comprises of logistics assets. As at 31 December 2022, its portfolio comprises 186 properties in the following locations (with the percentage of property concentration in each location in round brackets): Singapore (28%), China (23%), South Korea (11%), Japan (10%), Malaysia (9%), Australia (7%), Vietnam (5%), Hong Kong (5%), and India (2%).

Mapletree Industrial Trust’s portfolio comprises of industrial, along with data centre properties. As at 31 December 2022, its portfolio comprises 85 properties in Singapore (60% concentration), along with 56 properties in North America (40% concentration).

Mapletree Pan Asia Commercial Trust’s portfolio comprises of retail and office properties. As at 31 December 2022, its portfolio comprises 19 properties in the following locations (with the percentage of property concentration in each location in round brackets): Japan (47%), Singapore (32%), China (11%), Hong Kong (5%), and South Korea (5%).

Comments: In terms of geographical concentration, Mapletree Logistics Trust is the most diversified, where it has properties in 9 different countries.

Another thing to note, for Mapletree Pan Asia Commercial Trust, even though the concentration in Hong Kong is just 5% with 1 property in Festival Walk (this property has both retail and office component), and the concentration in Japan is 47% with 9 office properties, but in terms of net property income contribution for 9M FY2022/23 ended 31 December 2022, the former contributes 16% (and is the REIT’s second biggest income contributor), while the latter contributes just 8%. Singapore is the REIT’s biggest net property income contributor at 69%.

Market Capitalisation

The following are the 3 REITs’ market capitalisation based on their unit prices at close on 13 February 2023:

	Market Capitalisation
Mapletree Logistics Trust	S$7.936 billion
Mapletree Industrial Trust	S$6.29 billion
Mapletree Pan Asia Commercial Trust	S$9.06 billion

Comments: In terms of market capitalisation, Mapletree Pan Asia Commercial Trust is the biggest (this is despite the fact that the REIT has the least number of properties), followed by Mapletree Logistics Trust, and then Mapletree Industrial Trust.

Financial Performance (Q3 FY2021/22 vs. Q3 FY2022/23)

	Mapletree Logistics Trust	Mapletree Industrial Trust	Mapletree Pan Asia Commercial Trust
Gross Revenue (S$’mil)	Up 8.0% Q3 FY2021/22: $166.9m Q3 FY2022/23: $180.2m	Up 5.0% Q3 FY2021/22: $162.4m Q3 FY2022/23: $170.4m	Up 84.0% Q3 FY2021/22: $130.3m Q3 FY2022/23: $239.8m
Net Property Income (S$’mil)	Up 7.3% Q3 FY2021/22: $146.4m Q3 FY2022/23: $157.2m	Up 4.9% Q3 FY2021/22: $122.7m Q3 FY2022/23: $128.8m	Up 76.8% Q3 FY2021/22: $101.5m Q3 FY2022/23: $179.4m
Distributable Income to Unitholders (S$’mil)	Up 10.8% Q3 FY2021/22: $96.7m Q3 FY2022/23: $107.1m	Down 1.3% Q3 FY2021/22: $89.5m Q3 FY2022/23: $88.4m	Up 58.1% Q3 FY2021/22: $80.3m Q3 FY2022/23: $127.0m

Comments: In my opinion, its a stable set of results reported by all 3 Mapletree REITs.

2 things to highlight here – first, the strong jump in Mapletree Pan Asia Commercial Trust’s top- and bottom-line compared to the same time period last year was due to contributions from the properties from Mapletree North Asia Commercial Trust’s properties following the completion of the merger in August 2022. So, it goes without saying that the enlarged REIT’s financial results is the strongest (when compared with the other 2 Mapletree REITs.) However, if you strip out the effects of the merger, its gross revenue would have been up by just 5.9%, pretty much in-line with the growth in gross revenue as the other 2 Mapletree REITs.

Second, the slight decline in Mapletree Industrial Trust’s distributable income to unitholders was due to higher borrowing costs (as a result of a series of interest rate hikes announced by the Fed in the whole of 2022), along with higher management fees (as a result of a better portfolio performance and increase in the value of assets under management.)

If I were to compare which Mapletree REIT had the strongest results on a quarterly basis, it goes without saying that Mapletree Pan Asia Commercial Trust’s results is the strongest. But if I were to exclude effects of the merger, and looking at just the gross revenue growth alone, then Mapletree Logistics Trust has the best improvement (as its revenue grew by 8.0% compared to Q3 FY2021/22.)

Financial Performance (9M FY2021/22 vs. 9M FY2022/23)

	Mapletree Logistics Trust	Mapletree Industrial Trust	Mapletree Pan Asia Commercial Trust
Gross Revenue (S$’mil)	Up 11.3% 9M FY2021/22: $495.7m 9M FY2022/23: $551.7m	Up 15.2% 9M FY2021/22: $446.0m 9M FY2022/23: $513.8m	Up 58.5% 9M FY2021/22: $374.0m 9M FY2022/23: $592.9m
Net Property Income (S$’mil)	Up 10.4% 9M FY2021/22: $435.0m 9M FY2022/23: $480.4m	Up 11.9% 9M FY2021/22: $347.8m 9M FY2022/23: $389.0m	Up 56.0% 9M FY2021/22: $291.3m 9M FY2022/23: $454.6m
Distributable Income to Unitholders (S$’mil)	Up 14.5% 9M FY2021/22: $282.7m 9M FY2022/23: $323.7m	Up 3.4% 9M FY2021/22: $260.6m 9M FY2022/23: $269.5m	Up 44.6% 9M FY2021/22: $226.8m 9M FY2022/23: $328.0m

Comments: Just like its quarterly results above, the 3 Mapletree REITs’ financial performance for the first 9 months of FY2022/23 compared against the same time period last year (i.e. 9M FY2021/22) were pretty much stable.

The standout performance in Mapletree Pan Asia Commercial Trust’s performance is due to effects of the merger. Without it, its gross revenue would have been up by just 9.2% – and if you just compare the growth of revenue among the 3 Mapletree REITs, its revenue growth in percentage terms would be the weakest (with Mapletree Industrial Trust recording the strongest year-on-year growth in its gross revenue at 15.2%.)

Portfolio Occupancy (Q2 FY2022/23 vs. Q3 FY2022/23)

Moving on, let us take a look at the 3 Mapletree REITs’ portfolio occupancy, where I have compared the figures recorded for the current period under review (i.e. Q3 FY2022/23 ended 31 December 2022) against that recorded for the previous quarter 3 months ago (i.e. Q2 FY2022/23 ended 30 September 2022):

	Mapletree Logistics Trust	Mapletree Industrial Trust	Mapletree Pan Asia Commercial Trust
Portfolio Occupancy (%)	Up 0.5pp Q2 FY2022/23: 96.4% Q3 FY2022/23: 96.9%	Up 0.2pp Q2 FY2022/23: 95.6% Q3 FY2022/23: 95.7%	Down 1.4pp Q2 FY2022/23: 96.9% Q3 FY2022/23: 95.5%

Comments: Of the 3 Mapletree REITs, only Mapletree Pan Asia Commercial Trust’s overall portfolio occupancy rate dipped slightly – which can be attributed to a fall in the occupancy rate in its China properties (from 92.5% in Q2 FY2022/23 to 88.6% in Q3 FY2022/23.) However, I understand that the management is confident of an eventual upturn now that most of the Covid measures have been removed.

Looking at the occupancy rates of the 3 Mapletree REITs as a whole, I find them to be very resilient – where all 3 of them have occupancy rates at over 95.0%. But if I were to compare, Mapletree Logistics Trust come out on top for having the highest portfolio occupancy rates, as well as recording the highest improvement compared to the previous quarter.

Debt Profile (Q2 FY2022/23 vs. Q3 FY2022/23)

Just like how I have looked at the portfolio occupancy profile in the previous section, I will also be putting the 3 Mapletree REITs’ debt profile (by comparing its stats reported in the current quarter under review [i.e. Q3 FY2022/23 ended 31 December 2022] against that reported in the previous quarter 3 months ago [i.e. Q2 FY2022/23 ended 30 September 2022]) side-by-side to find out which one had the healthiest debt profile – especially in light of the current rising interest rate environment, I understand that retail investors will keep a close watch on these figures to make sure that the REIT’s debt profile is at comfortable levels:

	Mapletree Logistics Trust	Mapletree Industrial Trust	Mapletree Pan Asia Commercial Trust
Aggregate Leverage (%)	Up 0.4pp Q2 FY2022/23: 37.0% Q3 FY2022/23: 37.4%	Down 0.6pp Q2 FY2022/23: 37.8% Q3 FY2022/23: 37.2%	Up 0.1pp Q2 FY2022/23: 40.1% Q3 FY2022/23: 40.2%
Average Cost of Debt (%)	Up 0.1pp Q2 FY2022/23: 2.5% Q3 FY2022/23: 2.6%	Up 0.4pp Q2 FY2022/23: 2.9% Q3 FY2022/23: 3.3%	Up 0.2pp Q2 FY2022/23: 2.4% Q3 FY2022/23: 2.6%
% of Borrowings Hedged at Fixed Rates (%)	Up 1.0pp Q2 FY2022/23: 82.0% Q3 FY2022/23: 83.0%	Up 0.1pp Q2 FY2022/23: 74.2% Q3 FY2022/23: 74.3%	Up 5.8pp Q2 FY2022/23: 72.5% Q3 FY2022/23: 78.3%
% of Borrowings Due for Refinancing from Now till FY2024/25 (%)	26.0%	27.1%	35.0%

Comments: No surprises there that the average cost of debt of all 3 Mapletree REITs have trended upwards (as a result of a series of interest rate hikes by the Federal Reserve for the whole of calendar year 2022, driving up the cost of borrowings.)

Looking at the aggregate leverages, apart from Mapletree Pan Asia Commercial Trust, whose aggregate leverage is slightly past 40.0%, the other 2 Mapletree REITs have aggregate leverages at pretty comfortable levels (at 37.0+% levels, they are, in my opinion, a safe distance away from the regulatory limit of 50.0%.)

Another thing to note is the percentage of borrowings due for refinancing from now till end of FY2024/25 (on 31 March 2025) – in case some of you may be wondering why 2025, the reason is because I personally foresee interest rates to come down to more reasonable levels only in the year 2025 (I expect interest rates to continue to remain at elevated levels in 2023, as well as in 2024.) Looking at the figures, Mapletree Logistics Trust has the least percentage of borrowings due for refinancing. Coupled with the fact that it also has the highest percentage of borrowings hedged at fixed rates (at 83.0% as at 31 December 2022), the REIT will be least impacted by the negative effects of interest rate hikes (compared to the other 2 Mapletree REITs.)

Distribution Payout to Unitholders (9M FY2021/22 vs. 9M FY2022/23)

All 3 Mapletree REITs declare a distribution payout to unitholders on a quarterly basis (so for those whose preference is to invest in REITs that pays out a dividend in such a time frequency, you can have a look at the Mapletree REITs), and the following table is a comparison of their payout so far for the first 9 months of the current financial year 2022/23, compared against the same time period last year (i.e. 9M FY2021/22):

	Mapletree Logistics Trust	Mapletree Industrial Trust	Mapletree Pan Asia Commercial Trust
Distribution Per Unit (S$’cents)	Up 3.4% Q3 FY2021/22: 6.519 cents Q3 FY2022/23: 6.743 cents	Down 0.7% Q3 FY2021/22: 10.31 cents Q3 FY2022/23: 10.24 cents	Up 8.1% Q3 FY2021/22: 6.81 cents Q3 FY2022/23: 7.36 cents

Comments: Among the 3 Mapletree REITs, Mapletree Industrial Trust is the only one that saw its distribution payout decline slightly, due to its payout being impacted by higher borrowing costs, along with higher Manager’s management fees (as a result of a better portfolio performance and increase in the value of assets under management.)

Looking at the growth of distribution payout by the 3 Mapletree REITs, Mapletree Pan Asia Commercial Trust’s payout for the first 9 months of the current financial year grew the most, at 8.1%.

Which Mapletree REIT is the ‘Cheapest’, and Which is the ‘Most Expensive’?

The following table is a comparison of the valuations of the 3 Mapletree REITs based on their unit prices at close on Monday (13 February 2023) evening:

	Mapletree Logistics Trust	Mapletree Industrial Trust	Mapletree Pan Asia Commercial Trust
Unit Price	$1.65	$2.29	$1.72
P/E Ratio	10.2	13.7	13.6
P/B Ratio	1.1	1.2	0.9
Distribution Yield**	5.3%	6.0%	5.5%

Comments: Looking at the valuations above, I would say all 3 of them are somewhat the same – for Mapletree Logistics Trust, it has the lowest P/E ratio (among the 3), for Mapletree Industrial Trust, while its P/E ratio is the highest, but the same can be said for its yield as well (at 6.0%), and finally, for Mapletree Pan Asia Commercial Trust, its P/B ratio is the lowest.

But if you were to determine which REIT is the ‘most expensive’, and which is the ‘cheapest’ by looking at their book values, then Mapletree Industrial Trust is currently the ‘most expensive’ as it is trading at slightly above its book value. On the other end of the spectrum, Mapletree Pan Asia Commercial Trust’s is trading at a unit price which is below its book value, so it can be considered as being the ‘cheapest’ among the 3.

Closing Thoughts

I’m sure you’ll agree with me after reading the post that all 3 Mapletree REITs have their fair share of strengths and weaknesses:

For Mapletree Logistics Trust, it has the strongest financial performance (in terms of percentage growth) for the 3rd quarter (when I compare the figures for Q3 FY2022/23 against that recorded in Q3 FY2021/22) [this is as such when I strip out the effects of the merger for Mapletree Pan Asia Commercial Trust], highest overall portfolio occupancy (at 96.9%), as well as potentially being the least affected from the high interest rate environment (due to the REIT having the highest percentage of borrowings on fixed rates, along with lowest percentage of borrowings due for refinancing from now till FY2024/25.) It is also the most geographically diversified. However, among the 3 Mapletree REITs, its yield (based on its unit price on Monday, 13 February 2023, along with its full-year distribution payout for FY2021/22 which I based my yield computations on) is the lowest.

For Mapletree Industrial Trust, its financial results for the first 9 months of the financial year is the strongest in terms of its growth in percentage terms [again, do note that this is after I have stripped out the effects of the merger for Mapletree Pan Asia Commercial Trust]. However, its distribution payout to unitholders for the financial year so far have fell slightly compared to last year. Looking ahead, with the REIT having the lowest percentage of borrowings hedged to fixed rates (compared to the other 2 Mapletree REITs), I foresee the hike in borrowing costs in the coming quarters ahead to have an adverse impact on its distribution payouts.

Finally, for Mapletree Pan Asia Commercial Trust, its performance has benefited much from the merger with Mapletree North Asia Commercial Trust (due to revenue contribution from the properties in its portfolio). This led to its financial performance (both on a quarter-on-quarter [Q3 FY2021/22 vs. Q3 FY2022/23], as well as on a year-on-year [9M FY2021/22 vs. 9M FY2022/23] basis) recording a huge jump. Distribution payouts have also grown the most as a result of the merger. However, there are some weakness in its properties n China, along with the REIT having the highest percentage of borrowings due for refinancing from now till FY2024/25 (as such, its distribution payouts will likely be further impacted due to higher borrowing costs.)

With that, I do hope you have found the contents presented above useful, and that it gives you a better understanding on the strengths and weakness of each Mapletree REIT when their statistics are being put together side-by-side. Do note that this post is by no means any recommendation to buy or sell any of the Mapletree REITs. You should always do your own due diligence before you make any investment decisions.

Disclaimer: At the time of writing, I am a unitholder of Mapletree Logistics Trust, Mapletree Industrial Trust, and Mapletree Pan Asia Commercial Trust.

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