Mapletree Logistics Trust to Dispose of ‘Outdated’ Changi Property for S$22 Million
January 4, 2023
Trending News ☀️
M44U Intrinsic Value – Mapletree Logistics Trust ($SGX:M44U) (MLT) is a real estate investment trust (REIT) listed on the Singapore Exchange (SGX). MLT invests in a diversified portfolio of income-producing real estate and real estate-related assets in Asia Pacific. Recently, MLT has decided to dispose of its ‘outdated’ Changi property for the sum of S$22 million. The property is located at Changi North Crescent, within the Changi Business Park area. The property comprises a single-storey warehouse and a two-storey ancillary office building.
The proceeds from the disposal will be used for general corporate or working capital purposes, as well as to pay down existing debt. MLT is actively exploring various opportunities to re-invest the funds into higher yielding assets in order to enhance its portfolio. The disposal is subject to approval from the SGX, as well as other customary conditions. This disposal of an outdated asset is part of MLT’s strategy to strengthen its portfolio and generate higher returns for its investors. With this move, MLT hopes to take advantage of current market conditions and increase its shareholder value.
Share Price
The news has been met with a mostly positive response, as the divestment is expected to be beneficial for the company. On Wednesday, MAPLETREE LOGISTICS TRUST stock opened at SG$1.6 and closed at SG$1.6, suggesting a continued positive outlook in the market. The purpose of the divestment is to allow the company to focus on their core business operations and invest in newer, more profitable properties. The property in question is located near Changi Airport and has been described as “outdated”, suggesting that it is no longer suitable for use in the current market. This move also presents an opportunity to pocket a large sum of money from the sale, which can be used to invest in other, more profitable properties. This news has been welcomed by investors, who are optimistic about the future prospects of the company.
The sale is expected to be completed in the near future and could potentially provide a boost to the company’s earnings. The decision to divest from this property will also free up resources that can be used to develop and expand other areas of the business. Overall, the news of Mapletree Logistics Trust’s plans to divest from the outdated Changi property has been met with a largely positive response. The sale is expected to be beneficial for the company, as it will allow them to focus on their core business operations and invest in other, more profitable properties. This move could potentially provide a boost to their earnings and free up resources that can be used to develop and expand their other areas of business. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for M44U. More…
| Total Revenues | Net Income | Net Margin |
| 708.72 | 780.61 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for M44U. More…
| Operations | Investing | Financing |
| 567.08 | -1.79k | 1.3k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for M44U. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 13.54k | 5.95k | 1.58 |
Key Ratios Snapshot
Some of the financial key ratios for M44U are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | 73.6% |
| FCF Margin | ROE | ROA |
| – | – | – |
VI Analysis – M44U Intrinsic Value
Mapletree Logistics Trust’s fundamentals are an important indicator of the company’s long-term potential, and VI app has made the analysis simple and straightforward. According to VI Line, the intrinsic value of Mapletree Logistics Trust’s shares is estimated to be around SG$1.6. Currently, Mapletree Logistics Trust’s stocks are trading at SG$1.6, a price that is slightly undervalued by 1%. Investors should take into account the company’s fundamentals when considering investing in Mapletree Logistics Trust. Investors should look at factors such as the company’s financial performance, management team, competitive advantages, and other industry trends. Additionally, investors should consider the company’s dividend policy and its ability to generate cash flows before making any investment decision. Overall, Mapletree Logistics Trust is a reliable stock with a fair price that may provide investors with long-term growth potential. It is important to conduct a thorough analysis of the stock before investing to understand the company’s fundamentals and gauge its potential performance in the future. More…
VI Peers
Mapletree Logistics Trust (MLT) is an established real estate investment trust listed on the Singapore Exchange. MLT specializes in providing modern logistics facilities that serve the diverse needs of a broad range of customers. MLT’s competitors in the real estate space are Frasers Logistics & Commercial Trust, ESR LOGOS REIT, and CapitaLand Ascendas REIT. All of these companies are involved in the business of investing in and managing income-producing real estate for their unitholders.
– Frasers Logistics & Commercial Trust ($SGX:BUOU)
Frasers Logistics & Commercial Trust is a real estate investment trust (REIT) that specializes in industrial and commercial properties located in Australia and Europe. As of 2023, the company has a market capitalization of 4.31B. The trust owns a portfolio of income-generating industrial and commercial properties located in key markets across the two regions, which are leased to a diverse range of tenants. The trust also invests in other REITs which allows it to diversify its investments in other industries. The trust’s current portfolio consists of more than 90 properties located in Australia and Europe with a total net lettable area of over 4 million square meters. Frasers Logistics & Commercial Trust is managed by Frasers Property Limited and listed on the Singapore Exchange.
– ESR LOGOS REIT ($SGX:J91U)
REIT stands for Real Estate Investment Trust, and LOGOS REIT is a publicly-traded real estate investment trust that is focused on owning and operating a diversified portfolio of income-producing industrial, office, and retail properties in the United States and Canada. LOGOS REIT currently has a market cap of 2.49 billion as of 2023. This represents a significant increase from its market cap of 1.62 billion at the beginning of the year. Most of the value of the company is attributed to its substantial portfolio of properties, which span across the United States and Canada. The company’s portfolio consists of over 120 properties, including offices, industrial properties, retail centers, and other real estate investments. LOGOS REIT also owns and operates a range of travel-related businesses, including hotels, resorts, and hospitality assets, which contribute to its overall value.
– CapitaLand Ascendas REIT ($SGX:A17U)
CapitaLand Ascendas REIT is a Singapore-based real estate investment trust with a market cap of 11.52B as of 2023. The trust is managed by CapitaLand Commercial Trust Management Limited, a subsidiary of CapitaLand Limited, and was listed on the Singapore Exchange in 2002. It invests in a portfolio of income-producing real estate primarily used for business space and industrial purposes in Singapore, Australia, and China. Its portfolio comprises office, industrial and business park properties located in Singapore, Australia and China. The trust’s portfolio also includes retail and residential properties which are located in Singapore.
Summary
Mapletree Logistics Trust is a Singapore-based real estate investment trust that has just announced plans to dispose of its outdated Changi property for S$22 million. This move is seen as a positive sign by investors, as it shows the trust is actively modernizing its portfolio and taking advantage of current market conditions. The trust has a diversified portfolio of logistics, distribution and other industrial properties located primarily in Singapore, China, Hong Kong, Japan, South Korea, Malaysia and Australia.
The trust has also recently increased its dividend payouts to its unitholders in order to increase their returns. Investors looking for a reliable and stable income stream should consider investing in Mapletree Logistics Trust.
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