Added back Mapletree Logistics and Pan Asia Commercial

Before I share on my purchases of MLT and MPACT, let me briefly write on MIT’s latest acquisition move.

Mapletree Industrial Trust announced its first foray into Japan data centre. After browsing through the slides, I feel rather neutral towards the move. There is probably minimal impact in the short term but looking further, this does open a new market for future opportunities.

The acquisition will be funded by debt and private placement at an issue price between $2.160 and $2.212. If issued at the lowest price, it will be at a discount of 5.3% from the last traded price of $2.28 before the trading halt.

It is supposed to be DPU accretive. So even though most of us would not be participating in the placement, DPU should not decrease. Having said that, this is pro forma and given the tough macro conditions at the moment, it does not mean current year’s DPU will be higher.

Given that MIT is already among my top 3 holdings, I am unlikely to add on to it unless market throws me a good bargain.

In the mean time, Mapletree Logistics Trust and Mapletree Pan Asia Commercial Trust have been trending lower over the past one to one and a half month. With MLT and and MPACT hitting $1.63 and $1.65 respectively towards the end of today’s trading, I decided to add back what I sold in February and more MLT.

No particular new reason for adding. MLT has been pretty resilient despite the increase in operating expenses and interest rate, so I believe it can continue to do aright going forward. The cheap thrill is that my purchased price is slightly lower than the private placement price of $1.649 for the new units placed out in April.

As for MPACT, Singapore properties are doing really well and there are signs of recovery from Festive Walk. While Festive Walk’s rental reversion is expected to continue to be negative for this financial year, things should look brighter after that. I hope.

The above purchases and that of Daiwa House Logistics Trust a few days ago increase the REITs allocation in my portfolio to 32.4%. While still within my targetted range of 25% to 35%, I am unlikely to add more for the rest of the year.



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