Buy Rating Affirmed for Mapletree Commercial Trust Amid Attractive Valuation and Growth Potential

Analyst Geraldine Wong of DBS maintained a Buy rating on Mapletree Commercial (MPCMF – Research Report), retaining the price target of S$1.50.

Geraldine Wong’s rating is based on the attractive valuation and strong asset base of Mapletree Commercial, particularly its significant holdings in Singapore, such as VivoCity and Mapletree Business City. These assets contribute to over half of the trust’s income, providing stability and resilience in earnings. Despite a decline in gross revenue and distribution per unit, the portfolio’s occupancy and valuations have remained stable, with VivoCity experiencing a notable uplift in valuations.
Additionally, Wong believes that the market has not fully recognized the growth potential of the trust, especially with the possibility of interest rate cuts that could enhance distribution per unit. The recent divestment of Mapletree Anson has strengthened the balance sheet, positioning the trust for future growth opportunities. Concerns about Festival Walk’s value are considered overstated, with improvements in cash flows indicating a positive outlook. These factors collectively support the Buy rating with a target price of SGD1.75.

Wong covers the Real Estate sector, focusing on stocks such as CapitaLand Mall, Mapletree Logistics, and Mapletree Commercial. According to TipRanks, Wong has an average return of 0.2% and a 47.97% success rate on recommended stocks.