Mapletree Logistic Trust (MLT) is an Asia Pacific focused real estate investment trust that invests in a diversified portfolio of income-producing logistic real estate. These are warehouses and distribution facilities that are key nodes in the global supply chain. As investors, we ask if MLT deserves a place in our portfolio. We’ll attempt to answer this question by focusing our analysis around how effective MLT has been, and will be, in delivering absolute returns for shareholders. In this analysis, we will concentrate on three key areas: – The sustainability of its distribution – MLT’s strategy and its growth trajectory – Current valuation

Is MLT’s distribution sustainable?

Short Answer: Largely, Yes.

This is usually the first question I’ll ask whenever I look at income stocks. Income stocks generate shareholder’s return by paying out most of their earned income in the form of dividends. MLT as a REIT falls neatly into this category. Illustration of MLT Sources of Cash Income and Cash Expenditure...