Mapletree Logistics Trust - OCBC Investment 2020-12-16: Forsake Me Not

MAPLETREE LOGISTICS TRUST (SGX:M44U) | SGinvestors.io MAPLETREE LOGISTICS TRUST (SGX:M44U)

Mapletree Logistics Trust - Forsake Me Not




Recent share price underperformance due to rotation out of growth

  • Mapletree Logistics Trust's share price has depreciated 7.7% (as at 15 Dec close) since positive vaccine news first emerged from Pfizer and BioNTech on 9 Nov, as compared to the FTSE ST REIT Index’s 2.2% gain. We believe this underperformance has been driven by a rotation to value and laggards from growth and outperformers.
  • While this rotation play may continue in the near-term on continued positive vaccine developments, we believe Mapletree Logistics Trust's share price weakness does present a buying opportunity for investors with a medium to longer-term horizon, as we see Mapletree Logistics Trust as a beneficiary of structural tailwinds from rising e-commerce penetration rates in the region.
  • As a recap, Mapletree Logistics Trust (SGX:M44U)’s operational and financial performance has been resilient despite the debilitating effects of COVID-19. Its rental reversions and occupancy rates have remained firm, while DPU grew 1.2% for 1HFY21.


Beneficiary of accelerated e-commerce penetration

  • COVID-19 has undoubtedly accelerated the shift towards an increase in online consumption and thus e-commerce penetration rates. Another trend which has emerged is the shift from “Just-in-Time” to “Just-in-Case”, which means that retailers and businesses are looking to increase their inventory to serve as safety stock in the event of supply chain disruptions. These trends would likely underpin the demand for more warehouse space ahead.

Positive on recent acquisitions






OCBC Research Team OCBC Investment Research | https://www.iocbc.com/ 2020-12-16
SGX Stock Analyst Report HOLD MAINTAIN HOLD 2.12 UP 1.790



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