LIFETIME MEMBERSHIP After I published my investment portfolio in the previous article, an SG Wealth Builder requested me to do a deep dive into another stock in my portfolio – Mapletree Logistics Trust (SGX: M44U). As this counter is my largest investment in 2021 so far, I am more than happy to share an in-depth analysis on this S-REIT.
I have been covering Mapletree Logistics Trust (M44U) since 2018. The reasons for my conviction in this S-REIT are due to the rising unit price and the distributions in recent years. Since IPO, share price has surged from $0.63 to the current $1.90. On the other hand, annual distributions had increased from $0.0686 in FY12/13 to $0.08326 in FY20/21. Loyal investors of Mapletree Logistics Trust (M44U) must be laughing all the way to the bank!
For the uninitiated, Mapletree Logistics Trust (M44U)’s principal strategy is to invest in a diversified portfolio of income-producing logistics real estate as well as real estate-related assets in the fast-growing Asia-Pacific logistics sector. Sovereign wealth fund, Temasek Holdings, has about 33.1% stake in this S-REIT, holding 1.42 billion shares.
During COVID-19, Mapletree Logistics Trust (M44U) went on an aggressive acquisition spree to scale its business across the Asia-Pacific region. 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.
The acquisition spree reflected the management’s confidence of a global economy recovery in 2021. Indeed, the best time to scale a company’s business is to acquire assets during market downturns. This is the time when valuations will be at discounted levels. 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 14 May 2021, I am vested in 40,000 shares of Mapletree Logistics Trust (M44U). Henceforth, this article may be biased.
Mapletree Logistics Trust (M44U)’s DPU yield
Many S-REITs with exposure to shopping malls, hotel and commercial offices have been walloped by the COVID-19 pandemic. This is especially so during the Circuit Breaker and the on-going travel restrictions. Surprisingly, the pandemic has not inflicted significant damages to Mapletree Logistics Trust (M44U). This is because the core business of the S-REIT [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.]LIFETIME MEMBERSHIP
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