A fairly detailed analysis of $Mapletree Log Tr(M44U.SI) for those interested in REIT investing.

We think that MLT it would provide fairly stable and predictable returns for unitholders. The downside risk for both stocks are also well managed. We like the fact that MLT has a strong sponsor with a healthy pipeline of assets to acquire to feed its growth. We also like the fact that its has long term leases with WALE of 3.9 years, a fairly diversified lease profile and a prudent management of foreign exchange risk.

But there are certainly risk in MLT to watch out for and guidance on valuations and entry prices which is covered in the article.

Feedback is welcomed!

https://www.probutterfly.com/blog/an-analy...

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SSJ4

Using a different approach, we used a 15-year discounted DPU modal with no terminal value. The DPU growth rate is estimated at 3.07% and we opt for a discount rate of 2.75% which is approximately the Singapore Savings Bond (SSB) long term interest rate. Based on this, we derive an intrinsic value of $1.144. Similarly, investors should invest only at a price below $1.144 so that there is a comfortable safety margin. aking the lower of the 2 estimated value of MLT’s share price, we think that investors should be conservative and invest only when the share price trades below $1.12 with a comfortable margin-of-safety. At time of writing, the share price is currently trading at $1.195.

gingwien

Reply to @akwl88 : Thanks for re-posting the analysis from the article.

Let me know if you have any feedback or comments. Happy to hear where we can improve on the analysis.


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