Is Mapletree Logistic Trust a Good Buy Now? (SGX:M44U)
Last Updated on 4 weeks ago by Antony C.
Mapletree Logistic Trust (MLT) is listed in SGX with the ticker symbol M44U.SI, it is currently has a share price of SGD$1.160. It is a highly popular REIT many Singapore investors love.
At this price, MIT is valued at a price-to-book ratio of 0.842 and a trailing distribution yield of 6.720%.
With the current valuation, would I invest in it?
Let’s go through it using my 7 steps REITS dividend investing assessment and see if it is a dividend stock that is worth considering.
- Portfolio Occupancy Performance
- Diversified Tenant Base
- Dividend Yield
- Gearing Ratio or Aggregate Leverage Ratio
- Weighted Average Lease Expiry (WALE)
- Return of Equity (ROE)
- Price-to-Book Ratio
…and extra step, MOAT assessment.
Disclaimer: I may or may not have invest in any of the stocks/REITs/ETFs, what’s listed here is only for entertainment purpose only and it should never be used as any form of investment advice. Past performance ≠ future results. While I’ve been investing for +15 years, I am still learning, this is my stock investment diary, and I wish to share what I learn during my investment journey so you may learn from both my success and mistakes. Enjoy!
Business Background
Mapletree Logistic Trust (MLT) is the first Asia-focused logistics REIT in Singapore. MLT was listed on the SGX on 28 July 2005. MLT is managed by Mapletree Logistics Trust Management Ltd., a wholly owned subsidiary of Mapletree Investments Pte Ltd.
MLT’s strategy is to invest in a diversified portfolio of income-producing logistics real estate and real estate-related assets.
Currently, MLT it has a portfolio of ~180 properties in Singapore, Australia, China, Hong Kong SAR, India, Japan, Malaysia, South Korea and Vietnam with assets under management of S$13.3 billion.
Key Information
S$13.3 Billion
AUM
176
Properties Globally
96.2%
Occupancy Rate
Property Segments
1. Portfolio Occupancy Performance
Check for: More than 90% Occupancy Rate
Looking at the latest financial report. Mapletree Logistic Trust (MLT) is currently at 96.2% for overall occupancy across the all the regions.
- Singapore: 95.9% occupancy rate
- China: 94.0% occupancy rate
- Hong Kong SAR: 97.7% occupancy rate
- Japan: 99.7% occupancy rate
- South Korea: 96.6% occupancy rate
- Australia: 100% occupancy rate
- Malaysia: 97.1% occupancy rate
- Vietnam: 97.8% occupancy rate
- India: 100% occupancy rate
Looking at the occupancy rate, I am really happy with what it is standing right now, as it have an overall occupancy rate of more than 90%.
While there is a slight decrease when compare to the previous quarter, the difference is not significant of less than 1%.
My Opinion: Pass
2. Diversified Tenant Base
Check for: No tenant is more than 10% of gross rental income
Time to time, tenant leave or may face financial difficulties that may impact the income of our REITs, thus ensuring that no tenant is more than 10% of gross rental income is important.
Having a large and diversified tenant based ensure that the REIT is stable and will not be too greatly impacted by any one of it’s tenant.
Looking at the latest financial report. Mapletree Logistic Trust (MLT) have the following numbers:
- Number of Tenants: over 953 tenants
- Largest Tenant: 3.7% of the gross rental income
- Top 10 Tenants: 20.3% of portfolio gross rental income
Looking at how diversified the list of tenant, I am really happy with it, and not having any 1 tenant that is over 10% of gross rental income is a great sign of a good REIT management team.
My Opinion: Pass
3. Dividend Yield
Check for: More than a 4.5% dividend yield
Researching the data with financial tools for SGX listed securities and stocks. Mapletree Logistic Trust (MLT) is offering:
- Dividend yield: 6.72%
- 5 year average dividend yield: 5.18%.
| Year | Dividend (TTM) SGD |
|---|---|
| 2025 (ongoing) | 0.058 |
| 2024 | 0.086 |
| 2023 | 0.09 |
| 2022 | 0.075 |
| 2021 | 0.094 |
| 2020 | 0.081 |
| 2019 | 0.061 |
| 2018 | NA |
| 2017 | 0.056 |
| 2016 | 0.074 |
| 2015 | 0.074 |
| 2014 | 0.075 |
Calculating the dividend growth rate for 10 years, we can see that Mapletree Logistic Trust (MLT) is doing pretty well. For dividend investing, I’ll prefer if they will pay a stable dividend that is growing.
- 10 Years Dividend Yield Growth: 14.67% for the past 10 years.
Looking at the distribution history, the dividend payment is quite stable, and the main reason why it seems not growing between the year 2021 to 2022 is probably due to the pandemic.
My Opinion: Pass
4. Gearing Ratio or Aggregate Leverage Ratio
Check for: Gearing ratio of less than 45%
Gearing ratio or aggregate leverage ratio determines if the REIT is currently over-leverage. An over leverage REIT will not be able to buy more assets and grow their portfolio. This is one of the key metrics for a healthy balance sheet for REITs.
A quick check on the financials for Mapletree Logistic Trust (MLT) let’s take a look at it’s gearing ratio and weighted average tenor of debt.
- Gearing ratio: 41.2%
- Weighted average tenor of debt: 3.6 years.
Looking at the gearing ratio, I can see that it is pretty healthy, and with a low gearing ratio, it can have the option to grow it’s assets when opportunity comes in the future.
My Opinion: Pass
5. Weighted Average Lease Expiry (WALE)
Check for: Acceptable WALE of over 2.5 years
Weighted Average Lease Expiry (WALE) is the key metric if we want to look at REITs stability. Higher WALE means higher predictability of the future rental income of the REITs.
A quick check on the financials for Mapletree Logistic Trust (MLT) shows that it is showing a healthy WALE of 2.7 years.
Looking at the WALE, I can see that it is pretty healthy, while for Singapore is on the low side, the overall is pretty health which I am happy with it.
My Opinion: Pass
6. High Return Of Equity (ROE)
Check for: More than 5% ROE
Return on Equity (ROE) is often used to measure the management’s ability to make money. However, the ROE for REIT is generally low when compared with other stocks, as REITs are expected to be stable assets thus it’s ROE generally stays in the range of 2% to 5%.
Using the financial tool for SGX listed stocks, I got these values for Mapletree Logistic Trust (MLT):
- Current ROE: 2.5%
| Year | Return on Equity (ROE) |
|---|---|
| 2025 | 2.5% |
| 2024 | 4.0% |
| 2023 | 7.2% |
| 2022 | 11.1% |
| 2021 | 8.0% |
The current ROE is pretty low, and it don’t meet my requirements of 5% for REITs stocks. On the bright side it is positive, but too low for my taste.
My Opinion: Fail
7. Price-To-Book Ratio
Check for: a P/B Ratio of less than 1.2
Price to book ratio helps to tell us if a stock is over prices. While it is not a good metrics to assess all stocks, it is a great way to give a brief insights for REITs and can play a good role in determining if the REIT is worthwhile.
However, it is good to note it should not be the key factor when deciding if the REIT is cheap or expensive.
Looking at the current P/B ratio for Mapletree Logistic Trust (MLT)
- Price to Book Ratio: 0.842
I think it is quite undervalued for a blue chip REIT like this, it is a REIT that is worth exploring.
My Opinion: Pass
Extra: MOAT Assessment
Check for: Not just having a MOAT, but a great MOAT
MOAT for a REIT is rather hard to determine, or rather, what we should look into is the industry that it is in and the geographical region where the REIT’s properties are located.
Mapletree Logistic Trust (MLT) have rather high yield when compared to other investment options such as Government Bond, General STI index, or CPF Ordinary Account.
However, we need to also understand that MLT only have a fairly good history of sustainable growing returns for investors which shows it have a good MOAT, but not the best MOAT.
With that said, what I really like about MLT is how diverse it’s tenant base is, making it more resilient to all types of markets.
More importantly, I like that Mapletree Logistic Trust (MLT) is actively focusing on growth through a combination of a three-pronged approach that ensures that the REIT can continue to be a sustainable business through economic cycles, creating and protecting value over the long term.
And looking at the stable dividend yield, high occupancy rate, and slow but gradual capital growth, I think their strategy is working.
Mapletree Logistic Trust (MLT)‘s Top Competitors
- Frasers Logistic & Commercial Trust (SGX: BUOU)
- CapitaLand Ascendas REIT (SGX: A17U)
- ESR REIT (SGX: 9A4U)
In terms of MOAT, Mapletree Logistic Trust (MLT) has a strong ” Cost MOAT”.
As Mapletree Logistic Trust (MLT) have a massive backing and able to reduce it’s operation cost by it’s sheer volume. There is also a high switching costs if any of it’s tenant decided to stop renting which make it a good business.
In my opinion, Mapletree Logistic Trust (MLT)‘s MOAT is strong.
My Opinion: Pass (Good!)
REITs Scorecard Verdict: Mapletree Logistic Trust (MLT)
Below is how I’ve scored Mapletree Logistic Trust (MLT).
| Metric | Weightage | Score |
|---|---|---|
| Portfolio Occupancy Performance | High (2) | 2 |
| Diversified Tenant Base | Low (1) | 1 |
| Dividend Yield | Low (1) | 1 |
| Gearing Ratio or Aggregate Leverage Ratio | Low (1) | 1 |
| Weighted Average Lease Expiry (WALE) | Low (1) | 1 |
| Return of Equity (ROE) | Low (1) | 0 |
| Acceptable Price-to-Book Ratio | Low (1) | 1 |
| Extra: MOAT | High (2) | 1 |
| Total Score | NA | 8 |
Overall Score: 8/10
Why do I find some metrics more important than others?
There are 3 attributes in a company that Warren Buffett wants in particular:
- Wonderful Company at Fair Price
- Stable & Understandable Business
- Vigilant Leadership in Risk Management
This translate to the following 3 metrics I have on my list:
- Price-to-Book Ratio
- Debt-To-Equity Ratio or Gearing Ratio for REITs
- MOAT
Thus, for these metrics, I will put a higher weightage on my scoring.
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Antony C. is a Singaporean dividend investor focused on building passive income through REITs, ETFs, and Dividend Stocks. With 15+ years of experience investing in Singapore, Hong Kong, and China markets, he founded IncomeBuddies.com to share practical wealth-building strategies tested in his own portfolio since 2008. His expertise has been featured in Yahoo Finance, Nasdaq, and NFAA, and he’s the published book author of "Start Small, Dream Big".