Mapletree Logistics Trust (MLT) a dream or nightmare in the making?

Crisis? What crisis? Mapletree Logistics Trust (MLT) rubbished all talks of market downturn as its unit price went on a rampant to smash a record high in July 2019. What a magnificent run!

Christmas certainly come early for MLT as it went on a billion dollar shopping spree. Not that investors are complaining of course as the unit price rocketed to a stunning high of $1.65 on 5 July 2019. Subsequently, the unit price was brought down to earth to the current level of $1.60.

Those who had bought MLT during its IPO in 2005 would have no regrets. Its public offer of 357.4 million units at $0.68 per unit was 43.88 times over-subscribed, reflecting the strong demand for the REIT. Over the years, the management had delivered the goods as the unit price of Mapletree Logistics Trust climbed steadily to reach the current $1.58.

Mapletree Logistics Trust

Till to date, MLT had distributed a total of $0.952 per unit to unit holders. With the massive capital appreciation, long-time investors must be laughing all the way to the bank.

Being 32.9% owned by Temasek Holdings, it is evident that MLT is destined to be one of the leading lights among the S-REITs. Currently, this S-REIT holds 137 properties with value at nearly $7.9 billion. Given the pedigree, where will MLT go from here? And is the bullish form of its unit price  and dividends even sustainable?

MLT billion dollar acquisition spree

Before investors get carried away, a look at the financial statement revealed that Mapletree Logistics Trust’s DPU may not be sustainable. But more on this later. Currently, this counter is basking in the limelight as investors are reaping the rewards from the mega acquisition spree made in FY18/19. This explains the explosive bull run in recent months.

BullionStar

In June 2018, Mapletree Logistics Trust announced [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

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Updated: September 14, 2019 — 12:28 am

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