At the time of writing, Mapletree Logistics Trust‘s (SGX: M44U) units are going at S$1.81 each.
At that unit price, Mapletree Logistics Trust is valued at a price-to-book (PB) ratio of 1.5 and a distribution yield of 4.5%.
At a glance, the REIT looks overvalued. But is that really the case?
Let’s find out using my 10-step guide to pick the best Singapore REITs.
As a summary, here are the 10 steps I use to pick the best Singapore REITs:
Growth in Gross Revenue and Net Property Income Growth in Distribution Per Unit Property Yield of Between 5% and 9% Gearing Ratio of Below 40% Interest Coverage Ratio of Above 5x Healthy Portfolio Occupancy Rate Positive Rental Reversions Presence of Growth Prospects Acceptable Price-to-Book Ratio Distribution Yield of Above 5% Business Background
Before we dive into analysing Mapletree Logistics Trust, let’s take a quick look at what its business...