Mapletree Logistics Trust (MLT)

DBS analysts Derek Tan and Dale Lai have maintained their “buy” calls on Mapletree Logistics Trust (MLT) due to the expected increase in adoption of e-commerce following nationwide shutdowns due to Covid-19.

“We remain comfortable that MLT’s pure logistics exposure is least impacted by the Covid-19 outbreak and Singapore’s tightening restrictions on workspaces,” says DBS Group Research lead analyst Derek Tan.

This brings the REIT’s full-year DPU to 8.142 cents, a 2.5% increase from the previous year’s DPU of 7.941 cents.

“We remain comfortable that MLT’s pure logistics exposure is least impacted by the Covid-19 outbreak,” says DBS' Derek Tan.

SINGAPORE (Mar 20): REITs have not been spared the global equity sell-off — the latest of which was inadvertently triggered by global central banks.

The property is expected to provide a NPI yield of 4% and be DPU accretive to unitholders.

In its outlook statement, MLT’s manager has chosen to tread with caution for the near term at least. But analysts have their own views on MLT’s ability to thrive despite the macroeconomic challenges that loom.

Based on the purchase price, the acquisition is expected to generate stabilised NPI yield of 6.4%. It is also expected to be accretive at the distribution level.

The revenue growth was due primarily to higher revenue contributions from existing properties and acquisitions in Australia, South Korea and Vietnam completed in FY18/19 and 3Q19/20.

If you are new to the stock market, real estate investment trusts, or REITs, are a good place to start.