Mapletree Logistics Trust

Mapletree Logistics Trust announced that it has acquired three properties in Vietnam, Japan and S'pore for S$83.5m. We understand the trust has acquired one warehouse each in Vietnam and Japan while the third property is a distribution centre in Singapore. According to mgtm, all the 3 acquisitions are DPU accretive and 100% leased with stable rental income. Assuming the transactions are fully funded by debt, MapletreeLog’s gearing would be 40.2%. The reit currently offers yield of about 7.5%

Move also marks Mapletree's foray into Vietnam’s growing logistics market and kick-starts purchases from its sponsor, Mapletree Investments' strong development pipeline of about $700m of logistics properties in China, Vietnam and Malaysia. Deal brings number of properties in overall portfolio to 87 across 7 countries. Gearing expected to rise to 40.2% post-deal from 38.6% as of Mar but still leaves room for more debt-funded acquisitions given mgmt's medium-term gearing target of 45%.

Initial resistance at 50-day moving average of $0.84.