“MCT previously offered investors a unique exposure to the retail, office and business park sub-sectors in Singapore, given its portfolio of best-in-class assets such as VivoCity and Mapletree Business City. This is poised to change given that the merger with Mapletree North Asia Commercial Trust (MNACT) via a trust scheme of arrangement became effective on July 21,” writes the OCBC team.
Mapletree Commercial Trust (MCT) is on its way to recovery, say analysts from OCBC Investment Research, CGS-CIMB Research and Citi Research. Each of them have maintained their calls of “hold”, “add” and “neutral” respectively.
OCBC analysts, who reduced their target price (TP) for the REIT from $1.95 to $1.90 due to a higher risk-free rate assumption of 3.25% from 2.5%, say that notwithstanding macroeconomic and industry headwinds from the Covid-19 pandemic, they see firmer signs of recovery and believe MCT’s strong parentage and healthy balance sheet will allow it to tide over near-term uncertainties, while its strong management team and portfolio are well-positioned over the longer-term.
