Can anything stop Mapletree Logistics Trust? Since my last coverage on this counter in September 2019, the unit price had been on an incredible bullish form. The surging unit price of Mapletree Logistics Trust had created plenty of wealth for unitholders. Christmas certainly comes early for these investors!
To be frank, I had underestimated the potential of this S-REIT. Amid the rally in the S-REIT sector, 2019 turns out to be a fantastic year for Mapletree Logistics Trust as its unit price rocketed from $1.30 in January to the current $1.68. The increase of almost 30% within a year is certainly very impressive for an S-REIT!
It appears to me that the management is riding on the current industry upturn and seizing opportunities in the Asia Pacific region. In November 2019, Mapletree Logistics Trust had raised $250 million through private placement of 154.6 million unit to fund the acquisition of 50% interest in four properties in China, 100% interest in two properties in Vietnam and 100% interest in one property in Malaysia.
Despite the equity financing, the unit price of Mapletree Logistics Trust remained resilient. Question now is: will this S-REIT takes its swashbuckling run right into 2020? On the basis of its current form, the sky is the limit for this S-REIT! In this article, I will share the positive catalysts that led to the buoyancy of Mapletree Logistics Trust unit price in recent months. I will also provide my view on the sustainability of the DPU.
Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. Furthermore, I am not vested and have never invested in this counter before. Whether Mapletree Logistics Trust unit price will surge or collapse has no impact on me. Thus, this article is not meant to induce readers to make any form of investment decisions.
Mapletree Logistics Trust turned on the style
Being 31.7% owned by Temasek Holdings, Mapletree Logistics Trust is on the pathway to become one of the leading lights among the S-REITs. As of 30 September 2019, this S-REIT holds 137 properties with value at nearly $7.9 billion. The scale will increase with the latest acquisitions. Given the pedigree, where will MLT go from here? And is the bullish form of its unit price and dividends even sustainable?
Those who had bought MLT during its IPO in 2005 would have no regrets. Over the years, the management had delivered the goods as the unit price of Mapletree Logistics Trust climbed steadily.
Till to date, Mapletree Logistics Trust had distributed a stunning total of [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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