4 Points to Note When Choosing Strong REITs Such as Mapletree Logistics Trust

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4 Points to Note When Choosing Strong REITs Such as Mapletree Logistics Trust

The Smart Investor2022-09-28

REITs continue to be a source of consistent dividends during good times and bad.That said, it’s important to distinguish between goodREITsand poorly-performing ones.For a REIT to qualify as a long-...

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xingyunblu
·2022-09-28
[Like]
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SGREIT Champ
·2022-09-28
Agreed with all the above points except for one precaution : DHLT's mkt cap is too low... sub-500mil SGD... To be safer in these times, it is expected the mkt cap has to be bigger, perhaps cross the 1bil SGD mark.
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SSVC
·2022-09-28
K
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SPOT_ON
·2022-09-28
In a bear market..whatever.spo sor and what analysis u do also no use already
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BerryNat
·2022-09-28
Wah reached 52weeks low already.
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Simonnov
·2022-09-28
Ic
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Ahsiang
·2022-09-28
Sure anot
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Kwgan
·2022-09-28
Ok
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T202311701
·2022-09-28
O
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SGboy
·2022-09-28
Thanks for sharing
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Kaden0204
·2022-09-28
Ok
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- Kaden0204:
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  2022-09-28
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href=https://thesmartinvestor.com.sg/4-points-to-note-when-choosing-strong-reits-such-as-mapletree-logistics-trust/><strong>The Smart Investor</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>REITs continue to be a source of consistent dividends during good times and bad.That said, it’s important to distinguish between goodREITsand poorly-performing ones.For a REIT to qualify as a long-...</p>\n\n<a href=\"https://thesmartinvestor.com.sg/4-points-to-note-when-choosing-strong-reits-such-as-mapletree-logistics-trust/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"M44U.SI","symbol_name":"丰树物流信托","start_time":0,"source_url":"https://thesmartinvestor.com.sg/4-points-to-note-when-choosing-strong-reits-such-as-mapletree-logistics-trust/","article_id":"1102023805","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1102023805","pubTimestamp":1664331660,"sourceInfo":{"source_id":"lsy1602567310727","name":"The Smart Investor"},"weMediaInfo":null,"summary":"REITs continue to be a source of consistent dividends during good times and bad.That said, it’s impo","collect":0,"end_time":0,"defaultTopTitle":"thesmartinvestor.com.sg","property":[],"viewcount":null,"language":"en","relate_stocks":{"M44U.SI":"丰树物流信托"},"translate_title":"选择Mapletree物流信托等强REITs应注意的4点","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"M44U.SI":0.9},"content_text":"REITs continue to be a source of consistent dividends during good times and bad.That said, it’s important to distinguish between goodREITsand poorly-performing ones.For a REIT to qualify as a long-term hold, it needs to display certain characteristics.An example of a strong and well-managed REIT is Mapletree Logistics Trust(SGX: M44U), or MLT.With interest rates heading higher, the logistics-focused REIT saw its unit price fall 15%recently to a year-low of S$1.58.Income-focused investors should view such a drop as a great opportunity to accumulate units of the REIT on the cheap.You may be wondering how you can identify if a REIT is a good one to add to your buy watchlist.Here are four pointers you need to take note of.A strong sponsorA key attribute to look for is the presence of a strong sponsor.Such a sponsor can not only provide financial support for a REIT in case it runs into trouble, but will also provide it with a steady pipeline of properties for acquisitions.MLT’s sponsor is Mapletree Investments Pte Ltd (MIPL), a global real estate development and investment firm that owns and manages S$78.7 billion of properties as of 31 March 2022.MIPL is also the sponsor for industrial REIT Mapletree Industrial Trust(SGX: ME8U), or MIT, and retail cum commercial REIT Mapletree Pan Asia Commercial Trust(SGX: N2IU).Other reputable sponsors include Frasers Property Limited(SGX: TQ5), or FPL, and CapitaLand Investment Limited(SGX: 9CI), or CLI.Both FPL and CLI are real estate giants with assets under management of S$40.7 billion as of 31 March 2022 for the former and S$125 billion as of 30 June 2022 for the latter.Low or moderate gearing levelAnother important factor to watch for is a REIT’s gearing level.The Monetary Authority of Singapore has imposed a maximum regulatory gearing limit of 50% for all REITs.If a REIT’s leverage is too close to the 50% mark, it will stunt its ability to tap on more debt to acquire and leave it with no option but to undertake equity fundraising.Frasers Logistics & Commercial Trust(SGX: BUOU), or FLCT, has a gearing ratio of just 29.2% as of 30 June 2022.The REIT has debt headroom of close to S$2.9 billion to tap on for accretive acquisitions that will increase its distribution per unit (DPU).Keppel DC REIT(SGX: AJBU), a data centre REIT, sports a gearing ratio of 35.3% as of 30 June 2022, allowing it room to tap on borrowings to purchase more data centres.Track record of DPU risesAs REIT investors rely on steady distributions as a passive income source, any REIT that has demonstrated a good track record of rising DPU should be on your radar.MIT has chalked up an impressive track record, with its DPU rising without a pause from S$0.0841 in fiscal 2011/2012 to S$0.138 in fiscal 2021/2022.Healthcare REIT Parkway Life REIT(SGX: C2PU) can boast a similar streak.Its core DPU has risen without fail every year, going from S$0.0683 in fiscal 2008 to S$0.1408 in fiscal 2021.Investors can deduce that these REITs must be doing something right to see uninterrupted increases in their DPU over such a long stretch.A healthy acquisition pipelineFinally, a fourth attribute to watch for is the presence of a healthy acquisition pipeline.REITs grow using a variety of methods that include acquisitions and organic growth (i.e. asset enhancement initiatives and positive rental reversions).If a REIT’s sponsor does not have a ready pipeline of properties to inject into the REIT, the REIT manager may take more effort in locating a suitable acquisition to boost DPU.On this note, Keppel DC REIT has identified more than S$2 billion worth of acquisitions from its sponsor’s subsidiary and private data centre funds.Daiwa House Logistics Trust(SGX: DHLU), a Japan-focused logistics REIT, has identified suitable pipeline assets in both Japan and Southeast Asia that can be acquired from its sponsor Daiwa House Industry Co Ltd(TYO: 1925).These two examples provide a good showcase of how a REIT can prepare to acquire assets once the sponsor stabilises and readies the property for injection into the REIT.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[{"id":9918607719,"gmtCreate":1664372677631,"gmtModify":1676537442416,"author":{"id":"4092966579726440","authorId":"4092966579726440","name":"xingyunblu","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"[Like]&nbsp;","listText":"[Like]&nbsp;","text":"[Like]","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9918607719","repostId":1102023805,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9918601048,"gmtCreate":1664371214984,"gmtModify":1676537442144,"author":{"id":"4092886236695250","authorId":"4092886236695250","name":"SGREIT Champ","avatar":"https://static.itradeup.com/news/4e9c43f98c059bde13c61c0fc77dd30f","vip":1,"crmLevel":3,"crmLevelSwitch":0},"htmlText":"Agreed with all the above points&nbsp;except for one precaution : DHLT's mkt cap is too low... sub-500mil SGD... To be safer in these times, it is expected the mkt cap has to be bigger, perhaps cross the 1bil SGD mark.","listText":"Agreed with all the above points&nbsp;except for one precaution : DHLT's mkt cap is too low... sub-500mil SGD... To be safer in these times, it is expected the mkt cap has to be bigger, perhaps cross the 1bil SGD mark.","text":"Agreed with all the above points except for one precaution : DHLT's mkt cap is too low... sub-500mil SGD... To be safer in these times, it is expected the mkt cap has to be bigger, perhaps cross the 1bil SGD mark.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9918601048","repostId":1102023805,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9918144290,"gmtCreate":1664343510010,"gmtModify":1676537437377,"author":{"id":"3574906731000207","authorId":"3574906731000207","name":"SSVC","avatar":"https://static.tigerbbs.com/545a5ea462ff4ac7cc100bd3d8d97f72","vip":1,"crmLevel":3,"crmLevelSwitch":0},"htmlText":"K","listText":"K","text":"K","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9918144290","repostId":1102023805,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9918126530,"gmtCreate":1664337805821,"gmtModify":1676537436441,"author":{"id":"3582922989777578","authorId":"3582922989777578","name":"SPOT_ON","avatar":"https://static.tigerbbs.com/080f029371339d9db26930961de6adb1","vip":1,"hat":"https://static.tigerbbs.com/a3dee1aa3a3a3c1814833a4d3f8a5669","crmLevel":4,"crmLevelSwitch":1},"htmlText":"In a bear market..whatever.spo sor and what analysis u do also no use already","listText":"In a bear market..whatever.spo sor and what analysis u do also no use already","text":"In a bear market..whatever.spo sor and what analysis u do also no use already","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9918126530","repostId":1102023805,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9918167783,"gmtCreate":1664336382442,"gmtModify":1676537436148,"author":{"id":"4087986020499840","authorId":"4087986020499840","name":"BerryNat","avatar":"https://static.tigerbbs.com/27333e490249edd9b1054f0311c8584c","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"Wah reached 52weeks low already.","listText":"Wah reached 52weeks low already.","text":"Wah reached 52weeks low already.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9918167783","repostId":1102023805,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9918187563,"gmtCreate":1664334593452,"gmtModify":1676537435826,"author":{"id":"4097750438225520","authorId":"4097750438225520","name":"Simonnov","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"Ic","listText":"Ic","text":"Ic","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9918187563","repostId":1102023805,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9918181319,"gmtCreate":1664333732031,"gmtModify":1676537435553,"author":{"id":"3582617881962608","authorId":"3582617881962608","name":"Ahsiang","avatar":"https://static.tigerbbs.com/310f96e7696af85ae33ece774a483d15","vip":1,"crmLevel":3,"crmLevelSwitch":0},"htmlText":"Sure anot","listText":"Sure anot","text":"Sure anot","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9918181319","repostId":1102023805,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9918114232,"gmtCreate":1664333179435,"gmtModify":1676537435418,"author":{"id":"3555113831623017","authorId":"3555113831623017","name":"Kwgan","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9918114232","repostId":1102023805,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9918115439,"gmtCreate":1664333083721,"gmtModify":1676537435387,"author":{"id":"4115257325505790","authorId":"4115257325505790","name":"T202311701","avatar":"https://community-static.tradeup.com/news/816311e9879fbae4e952e2a5386f68ca","vip":1,"crmLevel":9,"crmLevelSwitch":0},"htmlText":"O","listText":"O","text":"O","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9918115439","repostId":1102023805,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9918112111,"gmtCreate":1664332870233,"gmtModify":1676537435348,"author":{"id":"4093688471950400","authorId":"4093688471950400","name":"SGboy","avatar":"https://static.tigerbbs.com/53fad8dabfd576c90fe8050483aa504f","vip":1,"crmLevel":7,"crmLevelSwitch":1},"htmlText":"Thanks for sharing","listText":"Thanks for sharing","text":"Thanks for sharing","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9918112111","repostId":1102023805,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9918118609,"gmtCreate":1664332565802,"gmtModify":1676537435292,"author":{"id":"4097384260129050","authorId":"4097384260129050","name":"Kaden0204","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":5,"crmLevelSwitch":0},"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/9918118609","repostId":1102023805,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":104124323,"gmtCreate":1664332575256,"gmtModify":1664332580341,"authorId":4097384260129050,"author":{"id":4097384260129050,"authorId":4097384260129050,"name":"Kaden0204","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9918118609,"type":1,"supId":0,"prevId":0,"content":"<u>k</u>","text":"<u>k</u>","html":"<u>k</u>"}],"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":164,"commentSize":0,"repostSize":0,"favoriteSize":4,"likeStatus":false,"favoriteStatus":false}}