Mapletree Logistics, the Real Estate sector company, was revisited by a Wall Street analyst today. Analyst Lock Mun Yee from CGS-CIMB reiterated a Buy rating on the stock and has a S$1.68 price target.
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Lock Mun Yee has given his Buy rating due to a combination of factors that highlight Mapletree Logistics Trust’s (MLT) strategic initiatives and financial performance. Despite a year-on-year decline in revenue and net property income for 2QFY26, MLT continues to achieve positive rental reversions and maintains a high portfolio occupancy rate. The trust’s efforts to stabilize its operations in China and its strategic focus on capital recycling through potential divestments in South Korea, Australia, and China are seen as positive steps towards portfolio rejuvenation.
Moreover, MLT’s management is exploring opportunities for acquisitions in India and Vietnam, alongside asset enhancement initiatives in Singapore, which could further bolster its growth prospects. The trust’s gearing and interest cost management remain stable, providing a solid financial footing. With a DPU yield of 6.2% factored into the slower growth outlook, potential catalysts for re-rating include sustained leasing momentum and accelerated asset recycling activities, while downside risks are associated with macroeconomic uncertainties that could impact rental growth.
According to TipRanks, Mun Yee is a 4-star analyst with an average return of 6.1% and a 54.76% success rate. Mun Yee covers the Real Estate sector, focusing on stocks such as Frasers Logistics & Commercial Trust, Keppel REIT, and CapitaLand Ascendas REIT.
In another report released yesterday, DBS also maintained a Buy rating on the stock with a S$1.55 price target.