Is Mapletree Industrial Better Than Mapletree Logistics?

Mapletree Industrial Trust (SGX: ME8U), or MIT, just released a good set of results for 2Q 2024.

The robust operational performance, characterised by a 1% QOQ increase in occupancy to 93.2% and a strong 10.7% YOY rental reversion, successfully mitigated the impact of the slight increase in property expenses and borrowing costs.

These led to the improvement in gross revenue, net property income and distribution per unit (DPU).

My initial, knee-jerk reaction was to compare these results to the recent weaker earnings of Mapletree Logistics Trust‘s (SGX: M44U), or MLT. But my more rational side cautioned against such a direct comparison, given their unique operating environments and recent challenges.

For instance, just not too long ago, MIT has grappled with issues like US occupancy, rising property expenses, and increased borrowing costs. In contrast, MLT has demonstrated resilience during these periods.

Undeniably, MIT has outperformed MLT in recent quarters. However, this doesn’t necessarily make MIT a superior investment.

Both REITs face different challenges at different times, and observing how they navigate these obstacles provides valuable insights into their management capabilities.

For now, I maintain a positive outlook on both REITs. I consider them well-managed and will continue to hold my positions in both.

Read more from source