For those unaware of “Scope” emissions, Scope 1 refers to direct emissions from company-controlled resources, such as “fugitive emissions” that include leaks of greenhouses gases (e.g., refrigeration or inefficient air-conditioning units).
Further down the scope list, Scope 2 covers indirect emissions from purchased electricity or cooling that powers properties.
So, for Mapletree Logistics Trust, committing to “carbon neutrality” in these two areas means its properties will be able to achieve a state of net-zero carbon dioxide emissions.
Essentially, it will balance out any carbon emissions in Scope 1 or 2 by removing or eliminating the same amount of emissions from the atmosphere.
In addition, targets to increase its properties’ solar-generating capacity (mainly via rooftop solar panels) should continue to enhance the efficiency and rentability of its portfolio.
Business as usual for Mapletree Logistics
Overall, it was a steady quarter for the large-cap, Asia-focused logistics REIT. Management noted that “overall leasing demand for warehouse space has stayed resilient”.
This has been supported by the usual structural drivers in Asia – domestic consumption, e-commerce and inventory stockpiling.
However, management did note that its tenants are generally cautious about capacity expansion. Yet the REIT continues to look at DPU-accretive acquisitions and asset enhancements for its current properties.
For example, Mapletree Logistics Trust is currently working on redeveloping an existing property at 51 Benoi Road in Singapore to increase the GFA by 2.3 times to 887,000 square feet.
All in all, the REIT looks like a steady name amid the universe of listed names in Singapore.
At its current price of S$1.72, Mapletree Logistics Trust units offer investors a 12-month forward dividend yield of 5.3%.
Disclaimer: ProsperUs Head of Content & Investment Lead Tim Phillips owns shares of Mapletree Logistics Trust.
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.