My orders for Mapletree Industrial Trust (MIT) are filled today as I added 5,275 shares.
I have long been wanting to increase my investment in Mapletree Industrial Trust from an odd number of 15,725 shares to at least 20,000 shares at a target price of below $2.08 for a dividend yield of at least 6.5%.
After MIT announced a dividend of $0.0336 last week despite revenue dipping 0.5% past quarter due to non- renewal of leases in its North America Portfolio and loss of income from divestment of its Tangling Halt factories, I believe the time is now ripe to make an addition.
MIT is on cum dividend for these 3 days till 7 May. By adding shares now, I will get to increase the dividends to be collected from MIT.
MIT is severely undervalued compared to it's historical valuations and future cashflows. DBS valued MIT at a target price of $2.60 based on discounted future cashflows and factoring in reduced future incomes from non renewal of leases. The last preferential offering in 2021 was at a price of $2.64.
Interest rate cuts are on the cards by the federal reserve and hopefully once the interest rate cuts are announced by later this year, the share price of MIT could recover by at least 10 to 20%.
MIT is still a resilient Reit with a portfolio of well located flatted factories, high-tech buildings with specifications catered to IT, media, bio-medical and varied industrial sectors. This diversification across different segments reduces its reliance on any single type of industrial property and the specific market conditions affecting it. Its large and diverse tenant base of over 2,000 tenants minimizes the impact of non-renewal or financial difficulties of any single tenant.
I am not bothered about short-term volatility but rather focused on long-term income investing in a well managed industrial Reit owning freehold data centres with long Wale and stable DPU above 6.5%.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. It's crucial to conduct your own research or consult with a qualified financial advisor before making any investment decisions.
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