MLT unit price (SGX: M44U) looking sexy!

My last update on Mapletree Logistics Trust (MLT) unit price (SGX: M44U) was in January 2022. Since then, the counter went through some volatility, falling from $1.78 to a low of $1.69 in end of January 2022 and then surge to a high of $1.88 in early April before falling to the current $1.68. As a unitholder, the volatility of MLT unit price (SGX: M44U) is certainly unsettling, at least for me. What could be the reason for the trend of MLT unit price (SGX: M44U)?

For background, the principal activity of MLT is to invest in a diversified portfolio of logistics real estate in Asia Pacific with the aim of providing its unitholders with a stable distribution stream. As at 31 March 2022, the Group’s portfolio had grown to a portfolio of 183 properties, comprising 53 properties in Singapore, 9 in Hong Kong SAR, 42 in China, 19 in Japan, 19 in South Korea, 13 in Australia, 16 in Malaysia, 10 in Vietnam and 2 in India. The total value of assets under management is $13.1 billion.

MLT m44u

The recent correction of MLT unit price (SGX: M44U) was partially attributed to the counter being ex-dividend on 9 May 2022. The S-REIT announced distribution per unit (DPU) of 2.268 cents for quarter ended 31 March 2022. This was an increase from the 2.161 cents distributed in 31 March 2021. For 12 months ended 31 March 2022, the full-year DPU was 8.787 cents.

The current MLT unit price is actually very attractive in terms of accumulation. Assuming the full-year DPU remains stagnant at 8.787 cents and assuming that you bought at the current $1.66, the annual dividend yield should be about 5.3%, which is much higher than bank saving rates. In this regard, the falling MLT unit price (SGX: M44U) provides investors good opportunities to buy the dip.

MLT share price met hurricane!

Mapletree Logistics Trust in rock and roll!

Mapletree Logistics Trust in wonderland

Mapletree Logistics Trust (M44U) to hit $2.50?

I had bought 16,000 shares when MLT share price was trading at $1.96. As I have bought the shares using my SRS account, I intend to hold the MLT shares for the long-term. This means that my intent of holding the shares is for dividend collection. Nonetheless, the sharp drop in MLT unit price means that I would need to collect at least 3.5 years of dividends to break-even my capital cost (assuming the annual DPU remains the same and that the unit price remains at current level).BullionStarNote 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 vested in this counter, so my views on MLT share price may be biased.

MLT unit price (SGX: M44U) faces headwinds

The biggest headwind confronting MLT should be [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.]

Lost your Password?

For members of SG Wealth Builder logging in from Apple or Mac devices, please access through this link. This allows for one-time log in only (instead of having to key in user-id and password twice).

LIFETIME MEMBERSHIP

Congratulations on your first step to becoming part of SG Wealth Builder community! For a one-off payment of $200, you can get full access to all the articles and enjoy the benefits of SG Wealth Builder Membership.

The full benefits and privileges of SG Wealth Builder Membership:

  1. Access to the latest premium articles of SG Wealth Builder
  2. Email notifications of latest blog articles
  3. Request for coverage on stocks, insurance and other personal financial topics
  4. Comment in articles

Note: After payment is made, you will be prompted with registration form to create your user-id and personal password.

Updated: May 11, 2022 — 10:36 pm

Leave a Reply