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An Investing Showdow – Mapletree Logistics Trust vs. Global Logistic Properties Ltd

With the rise of eCommerce, I think it’s only natural to have investors looking for ways to gain exposure to this trend.

The investments that China-based eCommerce titan Alibaba Group Inc had made in Singapore Post Limited  (SGX: S08) over the past few years may have led to more and more investors understanding the importance of the roles that warehousing and logistics can play in the growth of eCommerce.

With that, let’s take a closer look at two of the largest warehousing and logistics entities listed in Singapore’s stock market: Mapletree Logistics Trust  (SGX: M44U) and Global Logistic Properties Ltd  (SGX: MC0). Here are some of the key similarities and differences between the two logistic giants.

”Same, same…”

Both Mapletree Logistics Trust and Global Logistic Properties focus on ownership of logistics facilities. Both also have properties located all over the world. In fact, Global Logistic Properties is one of the largest owners of logistic properties in China, Brazil, and the U.S.A.

Both entities are backed by investment arms of the Singapore government. GIC counts itself as Global Logistic Properties’ largest shareholder with a 35% stake. Meanwhile, Mapletree Logistics Trust is sponsored by Mapletree Investments, an investment firm with links to Temasek Holdings.

“…but different”

An obvious difference between Mapletree Logistics Trust and Global Logistic Properties is their structure. Mapletree Logistics Trust is a real estate investment trust; it owns logistics properties that are managed by its manager and it is required by regulations to distribute 90% of its taxable income each year to its unitholders.

Global Logistic Properties on the other hand, is structured as a company. A company is not bounded by rules that require it to distribute any income as a dividend; as such Global Logistic Properties can perhaps place a little more focus on growing its assets.

REITs also have limits to the amount of debt they can take on, but a company has no such shackles; Global Logistic Properties thus has more flexibility when it comes to financing its business.

Size is another big differentiator between the two listed entities. While Mapletree Logistics Trust has a sizeable asset value of over S$5 billion, that is still relatively small when compared to Global Logistic Properties’ portfolio of US$33 billion.

In terms of physical size, Mapletree Logistics Trust’s portfolio has a net lettable area of 3.2 million square metres; this compares with Global Logistic Properties’ 48 million sqm in net lettable area.

Foolish Summary

For investors who are interested in the logistics sector, both Mapletree Logistics Trust and Global Logistic Properties may be obvious candidates for consideration due to their size. But, they are not direct substitutes of each other as they have important differences between them.

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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 writer Stanley Lim does not own any companies mentioned above.