Mapletree Logistics Trust


NDP Special Offer! On 21 July 2022, Mapletree Logistics Trust (SGX: M44U) delivered its 1QFY2022/2023 result. In view of this, its time to take stock the performance of the S-REIT. Unit price had tumbled following the US Federal Reserve interest rate hikes in March and May. Subsequently, it seems that the counter had bottomed in late May as unit price began to start climbing. The tepid unit price performances were attributed to the lack of buying by institutional investors. For the past 7 months, Mapletree Logistics Trust did not feature in the SGX Top Ten Institutional Net Buy Stocks.

The million-dollar question confronting investors right now must be whether Mapletree Logistics Trust (M44U) will launch another mega equity financing to fund its overseas logistics asset acquisitions. The $700 million equity fundraising in November 2021 to purchase the China, Vietnam and Japan assets had knocked the wind out of the unit price, which never returned to the $2.00 mark prior to the equity fundraising.

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 30 June 2022, the Group’s portfolio had grown to a portfolio of 185 properties in Singapore, Australia, China, Hong Kong SAR, India, Japan, Malaysia, South Korea and Vietnam. The total value of assets under management is $13.0 billion.

During the quarter, MLT completed the acquisitions of Mapletree (Yuyao) Logistics Park in China and Baeksa Logistics Centre in South Korea. The management has announced the redevelopment of 51 Benoi Road in Singapore, as well as the potential amalgamation of Subang 3 and 4 in Malaysia with the two land parcels acquired recently. The Benoi redevelopment project is estimated to cost approximately $197 million

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