MAPLETREE LOGISTICS TRUST
M44U.SI
Mapletree Logistics Trust - Issuance of SGD250m of perpetual securities
- Mapletree Logistics Trust (MLT SP, NEUTRAL TP: SGD0.89) announced an issuance of SGD250m of perpetual securities, with a fixed rate of 4.18% per annum.
- According to the REIT, its net proceeds will be used for general corporate funding purpose, including but no limited to the funding of potential acquisitions and asset enhancement initiatives.
- We think that the fund raising exercise is most likely be utilised for potential acquisitions in China and Malaysia. Its parent, Mapletree Investments, have a total of six assets with leasing underway, and management had previously mentioned that they were interested in acquiring assets in these countries in the near future.
- If the acquisitions were to be fully funded by the perpetual securities, it would certainly an accretive one, given that that the average cap rate for both China and Malaysia ranges from 7 to 9%. However, it would not be a significant uplift to its distribution per unit (DPU) as MLT owns a massive portfolio of over SGD5bn.
- We maintain Neutral on this counter.
Ivan Looi
RHB Invest
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http://www.rhbinvest.com.sg/
2016-05-17
RHB Invest
SGX Stock
Analyst Report
0.89
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0.89
