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Is Mapletree Logistics Trust or Mapletree Industrial Trust a Better Buy Now? Part 1

Mapletree Logistics Trust (SGX: M44U) and Mapletree Industrial Trust (SGX: ME8U) are real estate investment trusts (REITs) with a focus on industrial assets.

The former specializes in logistics properties, owning 140 logistics properties around Asia and Australia. The latter owns a more diversified group of 86 industrial properties and data centres in the U.S. (through its 40% joint venture). Both companies share a common sponsor, Mapletree Investments Pte Ltd.

Given that both REITs are exposed to the similar type of properties, investors might want to know which is a better buy now. To decide, I’ve put the duo to a test made up of three parts.

In this article, I will focus on the first part: the track record of growth in distribution per unit (DPU) in the last five years (both REITs have a 31 March year-end).

The showdown

Beginning with Mapletree Logistics Trust, from FY12/13 to FY17/18, it has grown its DPU from 6.86 Singapore cents to 7.62 Singapore cents. In other words, DPU was up by 11.1% during that period, giving investors a compounded annual growth rate (CAGR) of 2.1%.

On the other hand, from FY12/13 to FY17/18, Mapletree Industrial Trust has grown its DPU from 9.24 Singapore cents to 11.75 Singapore cents, meaning DPU was up by 27.2% during that period, giving investors a CAGR of 4.9%.

Conclusion 

Both REITs have grown their DPU over the last five years, but Mapletree Industrial Trust grew its DPU at a higher rate during that period. Stay tuned for the second part of the comparison to be published in the next few days.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned. The Motley Fool Singapore recommends Mapletree Industrial Trust.