The first thing that springs to mind when the word “maple” is mentioned is syrup and pancakes. Well it does to me. It is reckoned, by some, that it can take as much 40 litres of sugar maple sap to make just one litre of maple syrup. That’s a 2.5% yield. Thankfully, the yields on Mapletree’s four Real Estate Investment Trusts are a good bit higher. But which is the best Mapletree REIT to own? Mapletree has only been around for just over a decade. It started life with $3b worth of asset at the turn of the Millennium….
It is reckoned, by some, that it can take as much 40 litres of sugar maple sap to make just one litre of maple syrup. That’s a 2.5% yield. Thankfully, the yields on Mapletree’s four Real Estate Investment Trusts are a good bit higher.
But which is the best Mapletree REIT to own?
Mapletree has only been around for just over a decade. It started life with $3b worth of asset at the turn of the Millennium. That has grown to around $19b today.
Within the Mapletree family of funds are five private real estate funds, which are open to institutional investors, and four REITs that are quoted on the Singapore market.
Mapletree Logistics Trust (SGX: M44U) is the largest of the four trusts. It has also been on the stock market the longest – it was listed in 2005. The company’s portfolio of assets, which initially consisted of 15 logistics properties in Singapore, has grown to 111 properties in a host of countries that include Japan, Korea, Vietnam and Malaysia.
Over the last nine years, MLT has delivered a total return of 10.7%. Over the same period, the Straits Times Index (SGX: ^STI) has managed a return of about 7%. Currently, with the share at $1.15, MLT is yielding 6.6%, which is not at all shabby.
With a market value of S$2.7b, Mapletree Commercial Trust (SGX: N2IU) is the next largest in the Mapletree family of REITS. It has only been on the market since 2011. Its assets include Vivocity that has almost singlehandedly transformed Singapore’s HarbourFront area.
Since its flotation, shares in MCT have risen from a dividend-adjusted S$0.74 to S$1.32, which equates to an annual total return of 21%. Over the same period, revenues at the Singapore-focussed REIT have almost doubled from S$136m to S$267m. Meanwhile, the book value has grown from S$1b to S$2.4b. Currently, the shares cost S$1.33 a pop, which equates to a historic yield of 6%.
Mapletree Industrial Trust (SGX: ME8U) is currently valued at S$2.5b, which makes it the third-largest Mapletree trust. Its main focus is the Singapore industrial property sector that includes business parks and warehouses. A total of 83 MIT properties pepper the central, north, east and west parts of Singapore.
MIT has been on the market since October 2010, which makes it the second-oldest Mapletree trust to be listed. Over the last three-and-a-half years, the shares have returned roughly 15%, thanks to the generous dividend payout. Without the dividend kicker, the capital appreciation of the shares would have been around 7% per year.
The youngest of the Mapletree REITs is Mapletree Greater China Commercial Trust (SGX: RW0U). It has been on the market for just over a year. Its properties include Gateway Plaza in Beijing and Festival Walk, which is located in the heart of Kowloon’s upmarket residential area. In common with Mapletree’s three other REITs, MGCCT sports a generous dividend yield. With the shares at S$0.88, the historic payout is an above-average 7.2%.
Mapletree has provided investors with a range of trusts that target specific sectors of the property market. In terms of yields, MGCCT has the highest payout, while MCT is the lowest. Investors looking for a pure-play Singapore REIT could focus on MCT and MIT. Those who are looking for some overseas exposure could look at MLT or MGCCT.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore Director David Kuo doesn’t own shares in any companies mentioned.