Mapletree Logistics Trust share price (SGX: M44U) in rock and roll

Year End Special Offer! Will the latest financial result set fire on Mapletree Logistics Trust share price (SGX: M44U)? The counter has been in buoyant mood in recent days following the release of a set of stellar financial result that saw 1st half gross revenue increasing 24.4% year-on-year to $328 million while net property income surged 21.4% to hit $289 million. Amount distributable to unitholders increased 19.2% to $186 million.

To be frank, it has not been a bed of roses for Mapletree Logistics Trust share price (SGX: M44U) in 2021. The counter crashed from $2.00 in January to a low of $1.78 in March. To be frank, I could not explain the root cause for the correction of Mapletree Logistics Trust share price (SGX: M44U). So far, there were no equity financing nor were there any adverse news affecting Mapletree Logistics Trust share price (SGX: M44U). Hence, the tepid performance of Mapletree Logistics Trust share price (SGX: M44U) had been puzzling.

Mapletree Logistics Trust share price M44U

Year-to-date, Mapletree Logistics Trust share price (SGX: M44U) increased by a mere 1.5% only. This is despite the S-REIT continuing to deliver good financial results for the past few quarters. Looking back, one of the plausible reasons for the lethargic trend of Mapletree Logistics Trust share price (SGX: M44U) could be due to the lack of interest from institutional fund houses.

A check with SGX website showed that the only period in which institutional fund houses entered this counter was in May 2021 – the counter was in the top ten institutional net buy list with $34.6 million being net bought. That buying spree sent Mapletree Logistics Trust share price (SGX: M44U) to a high of $2.15. Subsequently, the dearth of buying by the big boys led to Mapletree Logistics Trust share price (SGX: M44U) falling to a low of $1.95 in October 2021.

Based on the distributions announced for the past two quarters, the total full-year distributions should be about 8 cents (after factoring the tax). Thus, I am looking to enter when Mapletree Logistics Trust share price (SGX: M44U) reaches $2.00. If so, the dividend yield should be about 4%, which is quite decent for me.

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 (SGX: M44U) 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 (SGX: M44U) in cruise control

Being in the logistics sector industry, the business of Mapletree Logistics Trust remains open across its various markets. Even though the resurgence of COVID-19 infections in recent months had led to extended lockdowns in various countries, the demand for the S-REIT’s warehouses has been resilient. The occupancy rates have stabilized at 97.8% in recent months, vis-à-vis a low of 97.1% in 2020. The steady business performances enabled Mapletree Logistics Trust share price (SX: M44U) to swiftly recovered from the market rout in March 2020.

Moving forward, the management is expected to [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: November 1, 2021 — 11:13 pm

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