Atiqah Mokhtar Published on Fri, Jul 30, 2021

DBS Group Research analysts Derek Tan and Dale Lai have kept their “buy” call and target price of $2.35 for Mapletree Logistics Trust (MLT) in a July 28 research note.

“MLT should continue to ride on the robust fundamentals for logistics properties post-Covid,” the analysts say.

Tan and Lai believe MLT has taken significant steps to become one of the leading logistics solutions providers, with more than $2 billion worth of deals done in the past few years. They expect MLT to continue making accretive acquisitions, supported by a low cost of capital and significant pipeline.

“MLT has over circa four million sqm of properties available for acquisition from its sponsor,” they point out. Around 60% are properties in China, which are currently in different phases of development and leasing. 

Overall, the analysts are upbeat on the REIT’s prospects and anticipate tailwinds ahead. “We are optimistic that MLT can deliver on both organic and inorganic growth and with c.42% of its tenants in multilocations, MLT is well placed to ride on the burgeoning growth in Asia’s logistics sector,” they say.

As at 4.21pm, units in MLT are trading 1 cent or 0.47% lower at $2.13.