DBS Group Research analysts Derek Tan and Dale Lai have kept their “buy” call and target price of $2.35 for Mapletree Logistics Trust (MLT) in a July 28 research note.
“MLT should continue to ride on the robust fundamentals for logistics properties post-Covid,” the analysts say.
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Tan and Lai believe MLT has taken significant steps to become one of the leading logistics solutions providers, with more than $2 billion worth of deals done in the past few years. They expect MLT to continue making accretive acquisitions, supported by a low cost of capital and significant pipeline.
“MLT has over circa four million sqm of properties available for acquisition from its sponsor,” they point out. Around 60% are properties in China, which are currently in different phases of development and leasing.
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Overall, the analysts are upbeat on the REIT’s prospects and anticipate tailwinds ahead. “We are optimistic that MLT can deliver on both organic and inorganic growth and with c.42% of its tenants in multilocations, MLT is well placed to ride on the burgeoning growth in Asia’s logistics sector,” they say.
As at 4.21pm, units in MLT are trading 1 cent or 0.47% lower at $2.13.
