Mapletree Logistics Hub Tsing Yi, a property of Mapletree Logistics Trust in Hong Kong. (Photo: Mapletree Logistics Trust)

Fitch Ratings has assigned Mapletree Logistics Trust (MLT) with a long-term issuer default rating of 'BBB+' with an outlook of stable.

Fitch has also assigned a 'BBB+' long-term rating to REIT’s euro medium-term securities programme of SGD3 billion.

Among factors that Fitch has cited for the rating are MLT’s strong rent growth and occupancy.

“We expect MLT's like-for-like rental income to increase by around 2% a year on its high-quality logistics warehouse properties and healthy demand for the asset class”, said Fitch.

“Rent growth is supported by built-in escalations in more than 80% of its portfolio, and Fitch's expectations of 1%-2% positive rent reversions on expiring leases”, it added.

“Most of MLT's properties are modern, well-located warehouses in core connectivity nodes across key Asian trade hubs”.

“The quality of the properties, together with the limited supply of modern warehouses in the region, has allowed MLT to command premium rents, relative to traditional warehouses, and maintain a high occupancy rate of over 95%”, the agency posited.

Fitch Ratings’ full report on MLT’s rating can be viewed here.

MLT was last done on the Singapore Exchange at SGD2.03, which currently implies a distribution yield of 4.18% according to data compiled on the Singapore REITs table.

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By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.