Mapletree Logistics Trust (M44U) to hit $2.50?

SIGN UP FOR $10 TO UNLOCK ALL ARTICLES! Amid the onset of pandemic, many S-REITs have been adversely impacted due to the lockdowns in global cities and travel restrictions. Among the badly hit sectors are those S-REITs with core businesses in shopping malls and hospitality. Mapletree Logistics Trust (M44U) is one of the few S-REITs that bucked the trend.

Since the onset of COVID-19, Mapletree Logistics Trust (M44U) went on a crazy acquisition spree. Within the span of a year, the portfolio increased from 145 to 163 properties comprising 52 properties in Singapore, 9 in Hong Kong SAR, 18 in Japan, 30 in China, 12 in Australia, 15 in Malaysia, 18 in South Korea, 7 in Vietnam and 2 in India. The total value of assets under management is approximately $10.6 billion.

Mapletree Logistics Trust M44U

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In FY20/21, Mapletree Logistics Trust(M44U) acquired 18 properties, as compared to nine in FY19/20. The aggressive acquisition spree indicates that the management is confident of a global economy recovery in 2021. Indeed, despite the recent resurgence of COVID-19 infections, Mapletree Logistics Trust portfolio remains resilient. As of 3QFY20/21, the portfolio occupancy stood at 97.1%.

Given the slew of acquisitions, the upcoming full-year financial result should be excellent. In this regard, investors should be looking forward to the release of the full-year financial result, which is likely to set the unit price on fire. For 9MFY20/21, the net property income has already increased 11.9% to $324 million. However, due to the many acquisitions conducted for the past few months, the DPU increased by a mere 1.2% to 6.165 cents for 9MFY20/21.

In my opinion, Mapletree Logistics Trust bears the hallmark of a good company on the way to becoming a great company, which embarks on aggressive business expansion during economy downturns. This is the same approach adopted by AEM Holdings, another company in which I am invested in. In this article, I will share my views on the outlook for Mapletree Logistics Trust (M44U).

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. As of 30 March 2021, I am vested in 10,000 shares of Mapletree Logistics Trust (M44U). Henceforth, this article may be biased.

Mapletree Logistics Trust (M44U)’s DPU yield

I have been monitoring Mapletree Logistics Trust (M44U) for several years and often blogged about its financial performances. To be frank, the unit price performances of this counter have always confounded me. Since 2005, the unit price has more than doubled while annual distribution per unit (DPU) consistently grew from 5.07 cents to 8.142 cents (in FY19/20). Loyal investors of Mapletree Logistics Trust (M44U) must be laughing all the way to the bank.

Surprisingly, the pandemic has not inflicted significant collateral damages to the DPU. This is because the core business of Mapletree Logistics Trust (M44U) is in warehouse logistic properties. During the pandemic, countries still need to import and export goods through warehouses, especially essential goods. Because of this, the operations of Mapletree Logistics Trust (M44U) remain stable.

My observation is that the DPU will [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: April 5, 2021 — 10:21 pm