Excerpt from CGS International report.
Report Summary
Stock: Mapletree Logistics Trust (MLT SP)
Action: Add (Buy)
Target Price: S\$1.48
Current Price: S\$1.22
Upside: 21.0%
Key Idea: Mapletree Logistics Trust’s 4QFY26 results were broadly in line with forecasts. Distribution per unit (DPU) remained stable quarter-on-quarter, with a slight year-on-year decrease mainly due to the absence of divestment gains. Excluding these, DPU was up 0.9% yoy. Portfolio occupancy improved to 96.9%, with rental reversions at +4.2% ex-China and China’s negative reversion moderating. Management is considering recycling S\$100-150m of assets in China and Hong Kong SAR in FY27F and remains interested in growing its India exposure and asset enhancements in Singapore. The report reiterates an Add (Buy) rating due to stabilizing China performance and potential re-rating catalysts, but notes downside risks from a softer macroeconomic environment.
Ticker: MLT SP
Key Highlights:
- 4QFY26 DPU: 1.819 Scts (down 7% yoy, stable qoq).
- Portfolio value: S\$13.1bn (down 1.6% yoy).
- Gearing: 40.6%.
- Interest cost: 2.6%.
- Rental reversion: +4.2% ex-China, China negative reversion moderating to -2%.
- Potential asset recycling: S\$100-150m of China/HK assets in FY27F.
- ESG: B+ overall score, with a green roadmap targeting net zero by 2050 and 80% portfolio green certification by 2030.
Implications: Investors are advised to consider the stable DPU, strong asset management, and clear strategic focus on asset recycling and sustainability. The upside to target price and relative sector strength provide a positive outlook, contingent on macro conditions.
above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website : https://www.cgs-cimb.com
