Mapletree Industrial Trust - High-Tech Industrial Properties Driving Growth

MINT Placement - Accretive Acquisition but Look Out for the Rising Leverage

MINT Placement - Known Asset, More Data Centres, Less SME Exposure -> Heading in the Right Direction

Singapore REITs analyst, 13 years experience

Nupur Joshi, CFA

Equity Bottom-Up

Mapletree Logistics Trust / Equity Bottom-Up

<p>Mapletree Logistics Trust (MLT) is a well-managed REIT with strong management, diversified portfolio and a track record of providing stable distributions. Over the last one year, it has been steadily making acquisitions particularly in Australia using proceeds from a $250 mil perpetual bond issuance. With these funds now fully utilized, MLT’s gearing at a relatively high 38.7% and interest rates on an upward trend, the next wave of acquisitions would require the REIT to secure funding at a rate that would make future acquisitions yield accretive. The risk of an equity issuance is also likely to cap unit price. Combined with slow organic growth, the risk-reward ratio currently does not appear favorable to investors.</p>

Mapletree Logistics Trust (MLT) is a well-managed REIT with strong management, diversified portfolio and a track record of providing stable distributions. Over the last one year, it has been steadily making acquisitions particularly in Australia using proceeds from a $250 mil perpetual bond issuance. With these funds now fully utilized, MLT’s gearing at a relatively high 38.7% and interest rates on an upward trend, the next wave of acquisitions would require the REIT to secure funding at a rate that would make future acquisitions yield accretive. The risk of an equity issuance is also likely to cap unit price. Combined with slow organic growth, the risk-reward ratio currently does not appear favorable to investors.

메이플트리 로지스틱스 트러스트: 높은 기어링으로 안정적인 REIT