Investors were perhaps rattled by concerns over dividend sustainability amid expected non-renewals and capital value risk in the USA, note the analysts. However, Tan and Lai believe the manager has actively managed the portfolio, successfully renewing or back-filling of around 70% of expiries over the past two years, “demonstrating the continued relevance of their assets to enterprise needs”.
Mapletree Industrial Trust (MINT) is a “resilient dividend anchor” and its recent share price weakness is “mispriced”, say DBS Group Research analysts Derek Tan and Dale Lai.
MINT’s unit price has declined 7.14% year to date, but are up nearly 2% over the past month.
