What’s next for Mapletree Logistics Trust shares?

• Mapletree Logistics Trust (SGX: M44U) share price rose to S$1.76 on Tuesday (26 July)
• The property trust recorded a YoY revenue growth of 14.6% in its latest quarter
• OCBC and Maybank analysts maintained ‘buy’ calls but lowered price targets
• Keen to trade MLT shares? Open an account with us to start today.

MLT stock price: what’s the latest?

Mapletree Logistics Trust (MLT) shares have risen as much as 3% since the release of its latest quarterly financial results.

Despite this latest rally, the blue-chip counter remains down by approximately 6.4% year-to-date.

In terms of stock outlook, the latest analyst sentiments published by SGX StockFacts show a consensus rating of around ‘outperform’, alongside a price target of S$2.02 on the stock.

The price target equates to a 14.8% upside potential from MLT’s last traded price of S$1.76.

OCBC’s equity research team kept its ‘buy’ call on the stock in its latest research note, but lowered price target from S$2 to S$1.92.

The analysts noted that the real estate investment trust’s first quarter (Q1) FY2022/2023 results, which met their expectations, were ‘decent’. They also noted that this was the sixth consecutive quarter in which MLT raised its distribution per unit (DPU) by at least 5% on a year-on-year (YoY) basis to S$0.02268.

Maybank also reiterated a ‘buy’ rating on the stock alongside a lower price estimate of S$2.15. The analysts kept their forecasts for the rest of the financial year unchanged, but see earnings upside from ‘potentially stronger-than-expected rental recovery, acquisitions and divestment gains’.

How did MLT fare in Q1 FY2022/2023?

MLT reported a YoY revenue growth of 14.6% to S$187.7 million in Q1, driven by higher revenue from existing properties and contributions from accretive acquisitions completed during the quarter and the previous financial year.

Property expenses increased by 24.8% to S$24.4 million due to the enlarged portfolio and higher property and land tax. Accordingly, net property income for the quarter increased by 13.2% YoY to S$163.2 million.

MLT’s amount distributable to unitholders rose 17.2% YoY to S$108.6 million.

Looking ahead, MLT’s manager remains ‘mindful of the growing economic headwinds that will impact’ its tenants and costs.

‘We will remain vigilant and focused on maintaining portfolio stability while driving our portfolio rejuvenation strategy. In Singapore, the 51 Benoi Road redevelopment will add a high-specs ramp-up facility with a 2.3 times increase in gross floor area to 887,000 square feet, further strengthening our competitive position,’ said Ms Ng Kiat, Chief Executive Officer of Mapletree Logistics Trust Management Ltd.

Thinking of trading MLT shares?

Go long or short via CFDs on Mapletree Logistics Trust and other Singapore shares with our award-winning platform.* Open an account with us to start trading shares immediately.

_{*Awarded the Best Online Trading Platform by Influential Brands in 2021.}