Mapletree Logistics, the Real Estate sector company, was revisited by a Wall Street analyst yesterday. Analyst Lock Mun Yee from CGS-CIMB reiterated a Buy rating on the stock and has a S$1.63 price target.
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Lock Mun Yee has given his Buy rating due to a combination of factors that suggest a positive outlook for Mapletree Logistics. Despite a slight year-on-year decline in revenue and net property income for the first quarter of FY26, the company maintains a strong portfolio occupancy rate of 95.7%. This stability is supported by positive rental reversions in key markets such as Japan, where rental growth reached 7.2%, offsetting weaker performance in China.
Furthermore, the company’s financial management remains robust, with 84% of its debt hedged into fixed rates and a significant portion of distributable income hedged into Singapore dollars. This financial strategy, combined with a potential capital recycling plan involving asset divestments in South Korea, Australia, and China, positions Mapletree Logistics well for future growth. The company’s dividend yield of 6.2% is also attractive, and potential re-rating catalysts include sustained leasing momentum and accelerated asset recycling activities. However, Lock Mun Yee notes that downside risks include a soft macroeconomic outlook that could impact rental growth and portfolio values.
Mun Yee covers the Real Estate sector, focusing on stocks such as Elite Commercial REIT, Far East Hospitality Trust, and Lendlease Global Commercial REIT. According to TipRanks, Mun Yee has an average return of 2.8% and a 53.57% success rate on recommended stocks.
In another report released yesterday, DBS also maintained a Buy rating on the stock with a S$1.55 price target.