Mapletree Logistics Trust share price in trouble
Lifetime Membership What the hell. Never in my wildest dream did I expect Mapletree Logistics Trust share price to trade below its Net Asset Value (NAV). This STI constituent, supposedly a blue chip in SGX, has been a major disappointment for many SGX investors since the Fed started to hike interest rates in 2022. When can this counter ever see daylight?
Dampened by heightened geopolitical tensions and longer-than-expected high interest rate environment, the whole of S-REIT industry has been in wretched form for the last two years. Mapletree Logistics Trust is no exception. Year-to-date, Mapletree Logistics Trust share price continues its dismal form, having plunged by a whopping 20.5% and became one of the biggest falling stars among the STI constituents. However, the counter was in the spotlight recently when a unitholder flagged out that nearly 30% of leases are due for renewal in the coming financial year 2024/25 during the AGM. What raised a few eyebrows was that 13.2% of these leases are in China.
For background, Mapletree Logistics Trust is an S-REIT that invests 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 May 2024, it has a portfolio of 186 properties in Singapore, Australia, China, Hong Kong SAR, India, Japan, Malaysia, South Korea and Vietnam with assets under management of $13.3 billion.
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