Mapletree Logistics Trust share price (SGX: M44U) in wonderland

July 26, 2021 sgwealthbuilder 1322 Views 0 Comments

Lifetime Membership What an impressive run for Mapletree Logistics Trust share price! From $1.78 in March 2021, Mapletree Logistics Trust share price turned on the style to reach $2.10 lately. This represented an increase of 18% within four months. The breath-taking form of Mapletree Logistics Trust share price certainly caught many investors by surprise as this S-REIT is behaving more like a growth stock instead of a dividend stock.

Admittedly, I did not manage to catch Mapletree Logistics Trust share price when it bottomed in March. Instead, I bought 40,000 shares at an average price of $1.965. Given the recent bullish run of Mapletree Logistics Trust share price, I decided to cash out this counter at $2.12 per share. Excluding the distributions, I had made a tiny profit of $6,200. The profit represented 15.5% within the span of three months.

The decision to exit this counter is mainly because Mapletree Logistics Trust share price had hit my exit target price. I am not exactly a buy-and-hold type of investor. Usually, I set entry and exit prices for my investments. Fundamentally, there is nothing wrong with Mapletree Logistics Trust as the business outlook remains strong and the management is growing the S-REIT well. Nonetheless, the buoyant run of Mapletree Logistics Trust share price provided a good opportunity for me to cash out.

Surprisingly, it has not been exactly a smooth ride for Mapletree Logistics Trust share price in 2021. The counter crashed from $2.00 in January to a low of $1.78 in March. To be frank, I could not really pin down the reasons for the correction. Furthermore, nobody knows for sure when a stock correction will cease. For fear of catching a falling knife, I did not enter this counter until Mapletree Logistics Trust share price started to recover in April. In this article, I will share my analysis of the outlook for Mapletree Logistics Trust share price in FY2021.

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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. I am not vested in Mapletree Logistics Trust at the moment. Whether Mapletree Logistics Trust share 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 share price turned

Mapletree Logistics Trust’s investment mandate 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.

For the past year, Mapletree Logistics Trust 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 $10.7 billion.

Looking back, the collapse of Mapletree Logistics Trust share price in early 2021 could be attributed to the [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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