Resilient Portfolio and Strategic Management: Buy Rating for Mapletree Logistics Trust Amidst Market Challenges

CGS-CIMB analyst Lock Mun Yee reiterated a Buy rating on Mapletree Logistics (MAPGF – Research Report) yesterday and set a price target of S$1.63.

Lock Mun Yee has given his Buy rating due to a combination of factors that highlight the resilience and potential of Mapletree Logistics Trust (MLT). Despite a slight year-on-year decrease in revenue and net property income for the fourth quarter of fiscal year 2025, MLT’s portfolio maintained a high occupancy rate of 96.2% with a positive rental reversion of 5.1%. This indicates strong demand and effective management of their properties, even amidst challenges such as lower contributions from certain regions and divestment impacts.
Additionally, MLT’s strategic financial management, including a stable interest cost and a significant portion of debt hedged into fixed rates, provides a buffer against market volatility. The trust’s focus on domestic consumption, which constitutes about 85% of its revenue, further enhances its portfolio resilience. Although there is a slight reduction in the distribution per unit forecast for the coming years, the anticipated yield remains attractive. Potential catalysts for re-rating include sustained leasing momentum and accelerated asset recycling, while downside risks are primarily linked to macroeconomic factors that could affect rental growth and portfolio values.

Mun Yee covers the Real Estate sector, focusing on stocks such as Keppel REIT, Ascott Residence, and ESR-REIT. According to TipRanks, Mun Yee has an average return of -0.5% and a 40.21% 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.