In a report released today, Jonathan Koh from UOB Kay Hian maintained a Hold rating on Mapletree Logistics, with a price target of S$1.33.
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Jonathan Koh has given his Hold rating due to a combination of factors impacting Mapletree Logistics Trust. The trust is facing challenges from currency fluctuations, particularly the strength of the Singapore dollar, which has negatively affected its revenue and net property income. Additionally, the trust has experienced a decline in rental income from China due to ongoing negative rental reversions and a decrease in contributions from South Korea, exacerbated by the depreciation of the Korean won.
Furthermore, the trust’s portfolio occupancy has slightly decreased, with notable declines in Singapore due to newly completed properties with low occupancy rates. Despite these challenges, Mapletree Logistics Trust still offers a distribution yield that is competitive, though slightly lower than some peers. These mixed factors contribute to the decision to maintain a Hold rating, reflecting a cautious outlook amid current market conditions.
In another report released yesterday, CLSA also downgraded the stock to a Hold with a S$1.25 price target.
Based on the recent corporate insider activity of 6 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of MAPGF in relation to earlier this year.