Doubled Up on Mapletree Logistics Trust

I spent the past weekend pondering whether to increase investments in Capitaland Ascendas REIT or Mapletree Logistics Trust (MLT). 

Both are high quality income producing assets and have about the same yield at more than 5.5% per annum.

I decided to go for the latter and today my order for MLT was filled at $1.63 for 10,000 shares. I will now own 20,000 shares, doubling up on my current holdings.

MLT has launched a private placement recently in Apr 2023 at $1.649 per unit to raise S$200m to acquire 8 logistics properties in Japan, Australia and South Korea for S$913.6m, while keeping its gearing below 40%. This is a yield accretive acquisition amidst higher interest costs

I am happy that my purchase cost is slightly below the private placement price of $1.649 paid by the big boys and at 16% above its book value of $1.43. Projecting an annual dividend of $0.09 per unit, the dividend yield is around 5.5%, which is rather decent for a top quality logistics REIT.

This price is also much lower than the $1.69 paid by Blackrock in Feb 2023 to add 1.8m shares for S$3m.

I believe MLT is a resilient, robust REIT which thrives on the booming and growth of e-commerce and logistics demands in the APAC regions. It is a long-term investment for me to generate steady and consistent passive income for many years to come.

See related posts:

Added Mapletree Logistics Trust in first investment of 2021

Applied for Mapletree Logistics Trust Preferential Offering Shares (2020)

Nibbled Mapletree Logistics Trust and Sembcorp Marine

Thanks for reading. Stay focused and remain steadfast as always!

With love & peace,

Qiongster