Bad News From Mapletree Logistics Trust And Recent Investment Notes.

To be honest, I was initially dancing with joy when Mapletree Logistics Trust (“MLT”) announced that it was on an acquisition spree of up to 10 logistics properties that will be yield accretive to DPU. However, my joy turned into deep sorrow quickly when it was revealed that there will be no rights issue for existing unit holders but only a private placement for the equity component funding. I think that this is very unfair to existing unit-holders as new unit-holders got their units (@$1.649 per unit) at a discount to market price. But guess that MLT wants to complete the deal lightning fast and to have absolute certainty on the fund raising so all existing unit-holders just have to suck thumb. The only consolation here is that there will soon be another cash distribution from MLT (1 Jan 2023 to 10 April 2023) to existing unit-holders before issuing out new units.

Other investment highlights

For me, I do not usually do “monthly investment portfolios” updates like other bloggers at every month end as many times, nothing much has changed within 1 month but nevertheless, I try to update it every 2-3 months for documentation purpose- will probably update it at end of April’23 or beginning of May’23. 

Basically, stock markets are still in doldrums. Things may get worse before it gets better. Personally, the old adage that the stock market is always 6 months ahead of actual economic fundamental is eerily true for me at most time. My thoughts are that there are many good bargains out there for the picking during these dark times. My recent own acquisition sprees in the past month are:

1. ComfortDelgro (recovery play);

2. Hong Leong Finance (boring pick but historically well managed financial institution);

3. NetLink Trust (stable and resilient recurring revenue);

4. Haw Par Corporation (“Tiger balm” company that holds lots of UOB stocks as its strategic investments);

5. DigiCore REIT (its price crash till all time low due to concerns over another tenant bankruptcy);

6. United Hampshire US REIT (resilient revenue from its grocery tenants) and 

7. Fidelity Global Dividend Fund (decided to use Endowus and further diversify investments into funds)

Parting thoughts

Will the global economies and stock markets go down further from here despite the recent rally? Well, I am not sure and does not have a crystal ball. After the past years of abundance and excesses, the COVID pandemic finally ended the prosperous era and kicked off the “years of famine”. I will just continue to invest regularly to build up my passive income portfolio and wait for the better time to return and reap capital returns.