• Between 2005 and 2013, Mapletree Logistics Trust (“MLT”), Mapletree Industrial Trust (“MIT”), Mapletree Commercial Trust (“MCT”) and Mapletree Greater China Commercial Trust (“MGCCT”) listed on SGX. Combined market cap of these REITs grew 2.6x to present.
  • The four Mapletree REITS have averaged 14.5% distribution-inclusive returns from IPO date to present & currently maintain an average 6.0% distribution yield. MIT has been the strongest performer of the four REITs, with 18.2% average annualised total returns.
  • The four Mapletree REITs complete their FY17/18 with the March quarter. All four REITs have reported YoY growth in net property income (“NPI”) for the first nine months of the FY17/18 ending 31 Dec 2017.

Mapletree Investments was established in December 2000 to hold non-port properties transferred from PSA Corporation to Temasek Holdings. Mapletree Investments Group CEO Hiew Yoon Khong recently reiterated that in its early days, Mapletree strived to justify its existence and focused on adding value to shareholders and to develop a sustainable and viable business model. From this onset, Mr Hiew noted Mapletree Investments has been executing a business strategy that combines the roles of real estate developer, investor and capital manager.

As of 31 March 2017, Mapletree:

  • Owned and managed S$39.5 billion of office, retail, logistics, industrial, residential, corporate housing/serviced apartments, and student accommodation properties;
  • Managed four Singapore-listed real estate investment trusts (REITs) and six private real estate funds, which hold a diverse portfolio of assets in Asia Pacific, the UK and the US. Mapletree first entered China in 2005, and currently has presence in over 20 Chinese provinces which, as maintained by IE Singapore, is the most of any Singapore real estate firm.
  • Has established an extensive network of offices in Singapore, Australia, China, Hong Kong SAR, India, Japan, Malaysia, South Korea, the UK, the US and Vietnam.

As illustrated here the Mapletree business strategy covers the whole real estate investment process. This  spans deal sourcing and origination, acquiring and assembling a portfolio of high-potential assets for investment, development and asset management, to strengthening the portfolio for value creation and to generate returns upon exiting the investment. Mr Hiew maintained in January (click here for more) that the professionally managed real estate platform is well positioned to continue delivering growth and value going forward.

Mapletree REITs

Between July 2005 and March 2013, Mapletree Commercial Trust (“MCT”), Mapletree Logistics Trust (“MLT”), Mapletree Industrial Trust (“MIT”) and Mapletree Great China Commercial Trust (“MGCCT”) have listed on SGX.

The combined IPO market capitalisation of the four REITs was S$5.84 billion. This combined market capitalisation of the four REITs has since grown 2.6 times to S$15.28 billion at present. Of the four REITs, MLT has seen the biggest expansion of its market capitalisation, growing tenfold, from S$371 million on 28 July 2005 to S$3.73 billion at present.

Assuming distributions have been reinvested into the REITs, the four REITs have averaged a 14.5% annualised return from their IPO dates. As illustrated below, these returns were relatively consistent across the REITs, spanning 12.4% for both MLT and MGCCT, to 18.2% for MIT.

Annualised Total Returns Since IPO %

The long-term performances from inception for the four Mapletree REITS are tabled below. To see more details on each REIT in SGX StockFacts click on the REIT name. The table is sort by current market capitalisation.

 

Name SGX Code Listing Date IPO Market Cap S$M Market Cap S$M Offer Price $ 2 March Close Price Total Return since IPO %
Mapletree Commercial Trust N2IU 27-Apr-11 1,638 4,464 0.88 1.55 161.1
Mapletree Logistics Trust M44U 28-Jul-05 371 3,731 0.68 1.22 336.4
Mapletree Industrial Trust ME8U 21-Oct-10 1,360 3,638 0.93 1.93 242.8
Mapletree GCC Trust RW0U 7-Mar-13 2,475 3,448 0.93 1.22 79.1
Average           204.9

Source: Bloomberg & SGX StockFacts (Data as of 2 March 2018)

The four Mapletree REITs currently maintain an average dividend yield of 6.0%. There is also a degree of consistency in the yields, which currently range from 5.8% for MCT to 6.2% for MLT.

The shorter-term performances for the four Mapletree REITS are tabled below.

 

Name SGX Code Market Cap S$M 2 March Close Total Return 2017 % Total Return

YTD %

Dividend Yield %
Mapletree Commercial Trust N2IU 4,464 1.550 23.0 -3.0 5.8
Mapletree Logistics Trust M44U 3,731 1.220 38.7 -6.1 6.2
Mapletree Industrial Trust ME8U 3,638 1.930 32.2 -4.1 6.1
Mapletree GCC Trust RW0U 3,448 1.220 38.3 -0.8 6.1
Average       33.1 -3.5 6.0

Source: Bloomberg & SGX StockFacts (Data as of 2 March 2018)

Mapletree Investments is the sponsor of all four REITs, with its stake as of May 2017 in each of the Mapletree REITs illustrated below.

Source: Annual Reports (Data as of 31 March 2017)

All four Mapletree REITs complete their FY17/18 with the March quarter (i.e. 31 March). The four REITs have reported YoY growth in net property income (“NPI”) for the first nine months of the FY17/18 (ending 31 December 2017).

 

Mapletree Commercial Trust
MCT has declined 3.0% in the year thus far, following a 23.0% total return in 2017. MCT is a Singapore-focused REIT that invests on a long-term basis, directly or indirectly, in a diversified portfolio of income-producing real estate used primarily for office and/or retail purposes, whether wholly or partially, in Singapore, as well as real estate related assets. MCT’s portfolio comprises VivoCity, Mapletree Business City I (“MBC I”), PSA Building, Mapletree Anson, Bank of America Merrill Lynch HarbourFront. Net property income (“NPI”) for 3QFY17/18 grew 1.9% from 3QFY16/17, driven by higher contribution from VivoCity an MBC I. For more details click here.

NPI for the YTD FY17/18 (to 31 Dec) has gained 21.8% YoY.

 

Mapletree Logistics Trust

MLT has declined 6.1% in the year thus far, following a 38.7% total return in 2017. MLT’s principal strategy is to invest in a diversified portfolio of income-producing logistics real estate and real estate-related assets. It has a portfolio of 124 logistics assets in Singapore, Hong Kong, Japan, Australia, China, Malaysia, South Korea and Vietnam with a total book value of S$6.2 billion. NPI for 3QFY17/18 grew 3.9% from 3QFY16/17. For more details click here.

NPI for the YTD FY17/18 (to 31 Dec) has gained 4.6% YoY.

 

Mapletree Industrial Trust

MIT has declined 4.1% in the year thus far, following a 32.2% total return in 2017. MIT’s principal investment strategy is to invest in a diversified portfolio of income-producing real estate used primarily for industrial purposes in Singapore, and income-producing real estate used primarily as data centres worldwide beyond Singapore, as well as real estate-related assets. MIT’s property portfolio comprises 85 industrial properties in Singapore and 14 data centres in the US (40.0% interest through the joint venture with Mapletree Investments Pte Ltd). NPI for 3QFY17/18 grew 11.7% from 3QFY16/17. For more details click here.

NPI for the YTD FY17/18 (to 31 Dec) has gained 9.9% YoY.

 

Mapletree Great China Commercial Trust

MGCCT has declined 0.8% in the year thus far, following a 38.3% total return in 2017. MGCCT was established with the investment mandate of principally investing, directly or indirectly, in a diversified portfolio of income-producing real estate in the Greater China region, which is used primarily for commercial purposes (including real estate used predominantly for retail and/or offices), as well as real estate-related assets. MGCCT is the first commercial REIT with properties in both China and Hong Kong, and its portfolio comprises Festival Walk, Gateway Plaza and Sandhill Plaza. NPI for 3QFY17/18 was unchanged from 3QFY16/17. For more details click here.

NPI for the YTD FY17/18 (to 31