Investment Opportunities in Mapletree REITs Listed on SGX

November 22, 2023

Mapletree Pan Asia Commercial Trust VivoCity

Mapletree Real Estate Investment Trusts (REITs), a collection of investment opportunities listed on the Singapore Exchange (SGX), continue to showcase resilience and growth potential in various real estate sectors. Backed by Mapletree’s sponsorship and management, these REITs are well-positioned to offer stable returns to investors.

Mapletree Logistics Trust

Mapletree Logistics Trust (SGX: M44U) or MLT, the first Asia-focused logistics REIT in Singapore, has shown a promising performance in the logistics sector, a key driver in today’s e-commerce and supply chain-driven economy.

Reporting a 1.5% year-on-year increase in gross revenue in Q2 of FY23/24, MLT attributes its success to contributions from assets in Singapore, Hong Kong, Japan, Australia, and South Korea.

Despite challenges in China, MLT’s strategic divestments and robust portfolio occupancy of 96.9% signal strong management and foresight.

At its current level, MLT is trading with a 12-month forward dividend yield of 5.7%.

Mapletree Industrial Trust

Specialising in industrial assets, Mapletree Industrial Trust (SGX: ME8U) or MIT has demonstrated its capability to adapt to market demands.

The acquisition of a data center in Osaka highlights its commitment to diversifying and modernising its portfolio.

Despite a slight decline in DPU due to an enlarged unit base, MIT’s positive rental revisions and a strategic focus on tenant retention and cost management bode well for future stability.

At current level, MIT is trading with a 12-month forward dividend yield of 4.4%.

Mapletree Pan Asia Commercial Trust

Previously known as Mapletree Commercial Trust, Mapletree Pan Asia Commercial Trust (SGX: N2IU) or MPACT’s focus on office and retail real estate in key Asian markets offers a diverse investment portfolio.

Despite facing headwinds like a stronger Singapore dollar and higher interest rates, MPACT recorded growth in gross revenue and net property income.

Its core assets, VivoCity and Mapletree Business City, have shown substantial rental uplifts, underscoring MPACT’s potential in commercial real estate.

Currently, MPACT is trading with a 12-month forward dividend yield of 7.9%.

Investment Considerations

Investors looking at Mapletree’s REITs can expect:

  1. Diversification: Exposure to various real estate sectors across key Asian markets.
  2. Stability: Backed by Mapletree’s strong asset pipeline and management expertise.
  3. Growth Potential: With strategic acquisitions and divestments, these REITs have shown adaptability and potential for growth.
  4. Market Resilience: Despite global economic challenges, the REITs have managed to maintain occupancy rates and positive rental revisions in most markets.

Embracing long-term growth

Mapletree’s family of REITs listed on SGX presents a compelling case for investors seeking diversified, stable, and growth-oriented real estate investments.

With their strong performance and strategic management, these REITs are well-equipped to navigate the evolving market landscape and offer lucrative investment opportunities in the Asian real estate sector.

Disclaimer: ProsperUs Head of Content & Investment Lead Billy Toh doesn’t own shares of any companies mentioned.

Billy Toh

Billy is deeply committed to making investment accessible and understandable to everyone, a principle that drives his engagement with the capital markets and his long-term investment strategies. He is currently the Head of Content & Investment Lead for Prosperus and a SGX Academy Trainer. His extensive experience spans roles as an economist at RHB Investment Bank, focusing on the Thailand and Philippines markets, and as a financial journalist at The Edge Malaysia. Additionally, his background includes valuable time spent in an asset management firm. Outside of finance, Billy enjoys meaningful conversations over coffee, keeps fit as a fitness enthusiast, and has a keen interest in technology.

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