Mapletree Logistics Trust (SGX: M44U) Maintains Strong Results, But Valuations Seem Expensive



Mapletree Logistics Trust (SGX: M44U)'s fourth-quarter DPU went up 1% to 2.045¢. It is currently trading at 3.8% yield based on the last traded share price of $2.15 on 30 July.


Key Highlights:


  • Distribution per unit (DPU) and Dividend Yield (3.8%)

  • Price to book ratio (1.69)

  • Gearing (39.6%)

  • Interest coverage ratio (4.8x)

  • Portfolio occupancy rate (97.2%)

  • Growth catalyst


Background of Mapletree Logistics Trust


Mapletree Logistics Trust is Singapore’s first Asia-focused logistics REIT, listed on the Singapore Stock Exchange in 2005. The REIT invests in a diversified portfolio of quality, well-located, income-producing logistics real estate in Singapore, Hong Kong, Japan, China, Australia, South Korea, Malaysia and Vietnam.


1. Distribution per unit and dividend yield


In its first quarter 2021 result, Mapletree Logistics Trust delivered a healthy operational performance, with a 1% increase in DPU. Based on its latest price, the REIT is currently trading at about 3.8% dividend yield. Historically, the REIT has been paying very consistent DPU, with steady growth over the years. However, its current 3.8% yield is at the low side as compared to its average yield of 6.8% over the past 10 years.


Mapletree Logistics Trust's DPU Trend

2. Price to book ratio


Over the past 10 years, Mapletree Logistics Trust has been trading at an average price to book ratio of 1.06. Its current ratio of 1.69 does not look attrac