Mapletree Commercial Trust: Near-Term Positives Priced In, But Long-Term Potential Remains Intact

Seeking Alpha | Oct 17, 2019 at 4:45 PM
  • The unit price of Singapore-listed commercial REIT Mapletree Commercial Trust (OTCPK:MPCMF) [MCT:SP] has increased by +42% (excluding distributions) year-to-date versus a +2% increase for the Singapore benchmark Straits Times Index over the same period.
  • Following the proposed acquisition of MBC II, Mapletree Commercial Trust will increase its exposure to tenants in the technology industry to 18.0% of gross rental income, while tenants in the banking & financial services will account for a lower 11.3% of the REIT’s gross rental income.
  • With the recent equity fund raising to finance the proposed acquisition of MBC II, Mapletree Commercial Trust’ market capitalization could potentially increase from S$6.7 billion now to over S$7.5 billion.