N2IU Stock Fair Value – Is Mapletree Pan Asia Commercial Trust’s Share Price Overvalued Due to Weak Fundamentals?

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Mapletree Pan Asia ($SGX:N2IU) Commercial Trust (MAPLETREE) is a Singapore-based real estate investment trust (REIT) that invests in income-producing real estate used for retail, office and serviced apartment/hotel purposes. With the market correction this year, could MAPLETREE’s share price have been overvalued due to its weak fundamentals? MAPLETREE has been impacted by the pandemic, with rental income being largely affected due to lower consumer spending. In conclusion, MAPLETREE’s share price may have been overvalued due to its weak fundamentals and the impact of the pandemic on its rental income and Distribution Per Unit.

However, the company has been able to cushion these declines with cost-cutting measures and tax rebates, as well as its low gearing ratio. As the economy recovers, it is likely that MAPLETREE’s share price will also recover accordingly.

Share Price

The share price of Mapletree Pan Asia Commercial Trust (MAPLETREE) has recently seen some downward movement, with its stock opening at SG$1.5 and closing at the same price on Monday, down by 1.3% from its previous close of SG$1.5. This has led to questions about whether the share price is overvalued due to weak fundamentals, such as lower-than-expected earnings or a deteriorating balance sheet. Analysts have noted that the trust’s performance has been relatively lackluster, with its revenue and profits falling short of expectations in recent quarters. Its balance sheet has also weakened, although it still holds considerable assets that could be used to pay for the trust’s operational costs. At the same time, MAPLETREE’s share price has been buoyed by the fact that it holds and operates prime commercial real estates across Asia, which could provide a stable income stream.

However, there is still uncertainty about whether the trust’s performance can improve to justify its current share price. This is why many investors are questioning whether MAPLETREE’s share price is overvalued. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for N2IU. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for N2IU. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for N2IU. More…

Key Ratios Snapshot

Some of the financial key ratios for N2IU are shown below. More…

Analysis – N2IU Stock Fair Value

At GoodWhale, we have conducted an in-depth analysis of the financials of MAPLETREE PAN ASIA COMMERCIAL TRUST. Our proprietary Valuation Line has calculated that the fair value of the MAPLETREE PAN ASIA COMMERCIAL TRUST share is around SG$1.7. More…

Peers

It operates in various countries, including Singapore, China, South Korea, Japan, and Vietnam. MAPACT is one of the biggest real estate investment trusts in Asia and competes with CapitaLand Integrated Commercial Trust, Champion Real Estate Investment Trust, and CapitaLand Ascott Trust. All four of these investment trusts focus on retail and office properties in the Asia-Pacific region with a primary focus on the Singapore market.

– CapitaLand Integrated Commercial Trust ($SGX:C38U)

CapitaLand Integrated Commercial Trust (CICT) is a Singapore-based real estate investment trust that invests primarily in income-producing commercial properties. As of 2022, CICT has a market cap of 13.4 billion Singapore dollars. The company’s portfolio consists of retail malls and office buildings, with a focus on real estate in Singapore. CICT is managed by CapitaLand Investment Management, a subsidiary of CapitaLand Limited, one of Asia’s largest diversified real estate groups. CICT has become a major player in the Singaporean commercial property market, thanks to its strong portfolio and established track record of delivering strong returns to its investors.

– Champion Real Estate Investment Trust ($SEHK:02778)

Champion Real Estate Investment Trust is a real estate investment trust (REIT) listed on the Hong Kong Stock Exchange. It has a market cap of 17.2 billion as of 2022, making it one of the largest REITs in Hong Kong. The company invests in office, retail and industrial properties in major cities across Asia, including Hong Kong, Singapore, Tokyo, Seoul, Shanghai and Sydney. It is known for its high-quality assets and its ability to generate stable returns for investors. The trust is managed by Champion Asset Management Limited and its board is chaired by Mr. Chen Tair-jinn.

– CapitaLand Ascott Trust ($SGX:HMN)

CapitaLand Ascott Trust is a hospitality real estate investment trust that owns and manages a portfolio of serviced residences and hotel properties in key cities across the Asia-Pacific, Europe, the Middle East and Africa. With a market capitalization of 3.51 billion, CapitaLand Ascott Trust is one of the largest serviced residence owners in the world. Its portfolio comprises more than 110,000 units located within over 300 properties in over 80 cities. It partners with some of the world’s most renowned hospitality brands such as Ascott, Citadines, Somerset, Quest, lyf and Adina Apartment Hotels. The trust’s business model is to acquire income-producing properties, refurbish them and optimise them to generate long-term returns for its shareholders.

Summary

Investing in Mapletree Pan Asia Commercial Trust (MAPLETREE) can be a risky venture due to the company’s weak fundamentals. The company has posted several consecutive quarters of losses, and its financial metrics such as Return on Equity (ROE) and debt-to-equity ratio are below industry averages. This may lead to investors selling off their shares, resulting in a potential market correction in the share price.

On the other hand, the company’s dividend yield is quite attractive, and the market could react positively to any news of new developments or expansions. Ultimately, investors should be aware of the risks associated with investing in MAPLETREE before making any decisions.