Mapletree Investments Pte Ltd is one of Singapore’s largest real estate companies.
The property giant is probably most famous for being the sponsor of four prominent local real estate investment trusts: Mapletree Commercial Trust (SGX: N2IU), Mapletree Industrial Trust (SGX: ME8U), Mapletree Logistics Trust (SGX: M44U), and Mapletree North Asia Commercial Trust (SGX: RW0U).
REIT investors will probably be interested to find out more about this privately owned company. With that, here are five things investors should know about the property giant.
No. 1: Its portfolio
Mapletree Investments Pte Ltd owns and manages S$46.3 billion worth of a wide range of properties. On top of the four locally-listed REITs it manages, Mapletree Pte Ltd also manages six private real estate funds.
Its portfolio includes award-winning properties such as VivoCity (Mapletree Commercial Trust), Mapletree Business City I (Mapletree Commercial Trust) and II (Mapletree Investments), and Nanhai Business City Phase 1 (Mapletree India China Fund) in China.
No. 2: Its track record
Mapletree Investments Pte Ltd has a tremendous track record of high returns over the past few years. As of its last update on 31 March 2018, Mapletree Investments Pte Ltd achieved a four-year average return on invested equity of 11.1%. Its five-year net asset value compounded annual growth rate was 12.6%. The chart below shows Mapletree Pte Ltd’s asset growth and AUM ratio (managed: owned):
Source: Mapletree Investments Pte Ltd
No. 3: Aligned interest with REIT unitholders
Mapletree Investments Pte Ltd also has major stakes in all of the REITs it sponsors. Mapletree Investments Pte Ltd owns between a 34% to a 39% stake in each REIT it sponsors. As such, investors of Mapletree-sponsored REITs should be confident that Mapletree Pte Ltd manages its REITs from a position of alignment with minority shareholders.
No. 4: Property development track record
Besides owning and managing properties, Mapletree Investments Pte Ltd is also a well-recognised real estate developer. Its redevelopment projects include the rejuvenation of HarbourFront Precinct, which included the refurbishment of the old World Trade Centre into HarbourFront Centre, an office-cum-retail development that also houses the Singapore Cruise Centre.
Mapletree Ptd Ltd has also redeveloped the Alexandra Precinct and has successful projects overseas in China and Vietnam.
No. 5: Clear corporate social responsibility goals
Finally, Mapletree Investments Pte Ltd is not all about maximising profits and returns to shareholders. In fact, Mapletree Pte Ltd has clearly defined goals regarding giving back to society. For every S$500 million of net profit or part thereof, the property giant will set aside S$1 million to fund CSR commitments and programmes. The group has set up a five-member committee to provide strategic oversight of the “Shaping & Sharing programme.”
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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 Jeremy Chia does not own shares in any company mentioned. The Motley Fool Singapore recommends Mapletree Commercial Trust and Mapletree Industrial Trust.