Lock Mun Yee, an analyst from CGS International, reiterated the Buy rating on Mapletree Logistics. The associated price target remains the same with S$1.68.
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Lock Mun Yee has given his Buy rating due to a combination of factors that indicate resilience and stabilisation in Mapletree Logistics Trust’s performance. Despite a modest year-on-year decline in revenue and DPU, the latest quarter’s distributions are broadly on track with full-year expectations, and operating margins remain strong. Portfolio occupancy has improved, supported by stronger take-up in key markets like Singapore, Japan and South Korea, while newly completed assets such as Mapletree Joo Koon Logistics Hub are steadily ramping up.
Lock Mun Yee also highlights that rental reversions remain positive outside China, and the negative rental trend in China is easing, suggesting that the China logistics portfolio is stabilising. The trust’s balance sheet is manageable, with gearing around 40% and stable interest costs, providing financial flexibility. In addition, management’s ongoing capital recycling plans, including potential divestments in China and Hong Kong and redeployment into growth markets such as India and Vietnam, are seen as potential catalysts for value creation. Taken together, these factors underpin the reiterated Buy (Add) recommendation and the unchanged target price.
Mun Yee covers the Real Estate sector, focusing on stocks such as Keppel REIT, Mapletree Logistics, and CapitaLand Ascendas REIT. According to TipRanks, Mun Yee has an average return of 5.0% and a 51.38% success rate on recommended stocks.
In another report released today, DBS also maintained a Buy rating on the stock with a S$1.55 price target.