Mapletree Logistics Trust (SGX: M44U) is better than fixed deposits

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!

Mapletree Logistics Trust (M44U)

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.

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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.]

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