MLT boosts portfolio with accretive acquisitions, seen as proxy to Asian e-commerce and domestic consumption

Goola Warden
Goola Warden10/25/2019 06:30 AM GMT+08  • 8 min read
MLT boosts portfolio with accretive acquisitions, seen as proxy to Asian e-commerce and domestic consumption
SINGAPORE (Oct 28): Another week, another placement. Mapletree Logistics Trust’s Oct 22 announcement of a proposed private placement to raise $250 million has taken monies raised by real estate investment trusts through follow-ons alone to almost $4.6 b
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

SINGAPORE (Oct 28): Another week, another placement. Mapletree Logistics Trust’s Oct 22 announcement of a proposed private placement to raise $250 million has taken monies raised by real estate investment trusts through follow-ons alone to almost $4.6 billion. Demand for MLT’s placement units was strong even though, at its current price of $1.69 a unit and placement price of $1.617 a unit, yields are remarkably low for an industrial REIT, at just 4.9% and 5% respectively, based on the annualised distribution per unit yield of 8.1 cents. The private placement was more than 13 times covered and saw strong participation from new and existing institutional, accredited and other investors, MLT’s manager announced.

For 2QFY2020 ended Sept 30, MLT reported a DPU of 2.025 cents and net asset value of $1.17. The placement price represents a 38% premium to NAV, making any acquisition accretive.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.
Unlock unlimited access to premium articles with less than $9 per month. Subscribe Now