This is a short post for my own reference and also sharing. Today, Mapletree Logistics Trust ("MLT") has plummeted to an astonishing low point of S$1.410 per unit as of 20 March 2024. The only worse period than this is during the COVID crisis in March 2020 (S$1.362 per unit before a V-shaped recovery in unit price then). There seems to be an abundance of extreme pessimism permeating throughout the current SREIT stock market segment. Based on its last quarterly DPU of S$0.02253 per unit and annualising it, we will get a distribution yield of 6.4% now based on S$1.410 per unit. This is way better than the beginning of the year 5.3% at the price of S$1.710 as at 2nd Jan 2024.
1. SG 10 year risk free bond for benchmarking of premium
2. Script dividend election price for recent distribution is S$1.524 per unit.
Another interesting point to note is that the re-investment price for those who opted for the script dividend are getting new units at S$1.524 per unit. With the weak market price of S$1.410 per unit, this is a further 7.4% discount to the re-investment plan price.
3. Aggregate leverage ratio of 38.8% and 83% of debt hedged with fixed interest rate.
Parting thoughts
In view of the above plus points and also the indisputable fact that MLT has a very strong sponsor in Temasek Holdings, I have taken up additional 4,000 MLT units @ S$1.42 per unit this week using my Tiger Brokers account. I have an upcoming S$12K dividends by end of March 2024 for adding on to MLT next week if the price were to suddenly plunge further after the Fed Reserve meeting.
Wow!!!!! The only part that caught my eye in this post is not the low price of MLT or higher dividend yield, but the "S$12k dividends by end of March" !!!
ReplyDeleteGreat job on the eye popping dividends! Congratulations 🥳🎉
Hi BFIRE....good to see you dropping by! How have you been? haha, saw that you went holidaying in Bangkok earlier in the year...nice!
DeleteAiya, the dividends for Q1 and Q3 normally much higher than Q2 and Q4 as most companies and REITs year end is 31 Dec and they payout generally 2 times per annum only. Also, I took higher risk with margin facilities booster which is frowned upon by a number of folks (but so far have survived through the COVID period and high current interest rate environment with the strategy).
I guess market is expecting DPU will be cut going forward because of the HK / China exposure. Won't be surprised the Covid 19 Low will break.
ReplyDeleteHi Henry, good day to you. Yup, good point out on the HK/China Exposure. So far, HK seems to be holding up not too badly still with occupancy at 95%. China portfolio of around 19.4% of MLT is definitely in trouble with the current headwind and 93% occupancy at risk of further erosion of tenant and lower renewal rates.
DeleteI am keeping my fingers crossed that it don't go lower than March 2020 COVID crisis. Previously, I was actually thinking whether to buy into MLT or Mapletree Pan Asia Comm Trust. But the latter one contains office commercial spaces in HK and China that I am not comfortable with.
Today went up. I guess Powell's decision to maintain the rate with a projection of 3 small cuts is favourable ?
ReplyDeleteHi YX, yup, yesterday market mostly surprised by the dovish tone adopted by Powell. Many expecting more hawkish stance due to past 2 months of not too good inflationary data from US.
DeleteNevertheless, I think that the current SREITs doldrum state will continue with its see-saw up and down pricing. Until the anticipated interest rate cut actually materializes will we see meaningful stabilization and recovery in their unit prices.