Mapletree Logistics Trust (MapletreeLog, MLT SP)

Overview:

Mapletree Logistics Trust is a REIT focused on owning and managing logistics properties across Asia-Pacific. As of September 2024, MLT had a portfolio of 182 properties across key markets, including Singapore, Japan, Australia, and China. The trust recently announced the divestment of three properties in Malaysia to enhance its portfolio through capital recycling.

• Recent Divestments:
  • MLT announced the sale of Linfox, Celestica Hub, and Zentraline in Malaysia for a combined price of MYR157.5 million (approximately S$47.7 million). The divestments were made at a premium to their book values, with prices 1.9% to 28.6% higher than their most recent valuations.
• Strategic Objectives:
  • The divestments are aligned with MLT’s strategy to rejuvenate its portfolio by selling older properties and acquiring modern logistics assets with higher growth potential.
  • The capital raised from these sales will provide MLT with the financial flexibility to pursue new investment opportunities in high-growth logistics markets, especially in modern, high-specification facilities.
• Portfolio Strength:
  • MLT’s assets are well-positioned in high-demand locations, with an emphasis on e-commerce and third-party logistics tenants.
  • Occupancy Rates: The trust has maintained high occupancy rates across its portfolio, reflecting strong demand for logistics space in Asia-Pacific.

Outlook:

• Growth Prospects: MLT’s focus on high-quality logistics properties and its ability to recycle capital into newer, high-growth assets should provide steady earnings growth. The trust’s strategy of pursuing accretive acquisitions, alongside selective divestments, positions it well for continued expansion in key markets like Japan and Australia.
• Valuation: MLT currently trades at 1.0x P/B and offers a dividend yield of 5.7%. The consensus target price stands at S$1.60, representing an 11% upside from the current price of S$1.43.

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