DBS maintains ‘Buy’ on Mapletree logistics REIT in wake of property sales

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DBS Equity Research has maintained a ‘Buy’ rating on Mapletree Logistics Trust in light of revelations that the REIT will dispose two of its properties in Singapore.

The REIT made separate announcements on 3 August and 11 August that it will divest 4 Toh Tuck Link and 7 Tai Seng Drive for SGD14.5 million (USD10.6 million) and SGD68.0 million respectively.

Read: Mapletree logistics REIT to divest 7 Tai Seng Drive for SGD68 million and Mapletree logistics REIT to divest Toh Tuck Link warehouse for SGD14.5 million

The divestment figures represent 114% and 5% premiums to their respective fair values, notes DBS.

In an investment report issued on 15 August, DBS said that it is in favour of the REIT’s approach towards reviewing portfolio properties’ relevance in today’s changing needs for manufacturers, and third party logistics providers.

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About Author

Ridzwan Rahmat has been analysing Singapore-listed REITs and business trusts, since 2008. For disclosure purposes, Ridzwan is currently vested in Mapletree Greater China Commercial Trust, Mapletree Industrial REIT and Mapletree Logistics Trust.

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