So let’s compare the two. Mapletree Logistics Trust – which own multiple logistics properties across the Asia-Pacific region – paid out a distribution per unit (DPU) of 6.69 Singapore cents in FY2011/2012.
This happened to be the year that Mapletree Logistics Trust reverted to a financial year (FY) that ended on 31 March so I’ve taken the most recent four quarters’ DPUs of what was a five-quarter FY2011/2012.
Fast-forward to today and Mapletree Logistics Trust paid out a DPU of 6.52 Singapore cents for the first three quarters of FY2021/2022.
If we extrapolate its most recent DPU of 2.185 Singapore cents out to the end of this fiscal year (31 March 2022) then the REIT will pay out DPU of 8.7 Singapore cents for the whole of FY21/22.
That equates to a compound annual growth rate (CAGR) of its dividend of 2.9% over the past 10 years.
Meanwhile, Mapletree Industrial Trust was only listed in late 2010 so its first full year of dividend payments was FY2011/2012. In that year it paid out a DPU of 8.41 Singapore cents.
Today, based on the first three quarter of its latest FY21/22 year, it paid out a DPU of 10.31 Singapore cents.
If we extrapolate Mapletree Industrial Trust’s most recent DPU of 3.49 Singapore cents out to the end of this fiscal year (31 March 2022) then the REIT will pay out a DPU of 13.8 Singapore cents for the whole of FY21/22.
That means the REIT saw a dividend that expanded at a CAGR of 5.1% over the past decade, easily beating Mapletree Logistics Trust.
Winner: Mapletree Industrial Trust
Geographic and asset diversification
If the war in Ukraine has taught us anything as investors, it’s that you should be properly diversified across countries and sectors.
In that sense, it’s worth looking at how diversified the two Mapletree REITs are. First off, there’s Mapletree Logistics REIT.
As of 31 December 2021, the logistics giant had 167 properties across nine countries and regions; Singapore, Japan, South Korea, Hong Kong, China, Malaysia, Vietnam, Australia, and India.
Meanwhile, during its latest quarter, Mapletree Logistics REIT saw its largest tenant contribute just 7.0% of its overall revenue (see below).
In contrast, as of 31 December 2021 Mapletree Industrial Trust had 143 data centre and industrial properties across Singapore, the US and Canada.
On the tenant concentration front, it derived just 6.2% of its overall gross rental income from its largest tenant in its latest quarter.
In sum, Mapletree Logistics Trust has a better diversification profile given its breadth of exposure on a country level as well as the higher number of properties it owns.
Winner: Mapletree Logistics Trust
Finally, as dividend investors, it’s important that we focus on total returns as this will allow us to better gauge our long-run returns, taking into account both share price appreciation and the dividend yield.
I’m going to take a look at both the 10-year and five-year total returns of both REITs. On these fronts, the results are mixed.
Over the past 10 years (as of 31 January 2022), Mapletree Industrial Trust delivered a total return of 316.8%. This was superior to Mapletree Logistics Trust’s 10-year total return of 251.3%.
On the other hand, Mapletree Logistics Trust’s five-year total return of 108.9% edged out Mapletree Industrial Trust’s total return of 97.0% over the same period.
However, more weight should be given to the long-run returns so Mapletree Industrial Trust wins this round.
Tim, based in Singapore but from Hong Kong, caught the investing bug as a teenager and is a passionate advocate of responsible long-term investing as a great way to build wealth.
He has worked in various content roles at Schroders and the Motley Fool, with a focus on Asian stocks, but believes in buying great businesses – wherever they may be. He is also a certified SGX Academy Trainer.
In his spare time, Tim enjoys running after his two young sons, playing football and practicing yoga.