Mapletree Logistics Trust Actively Managing Its Portfolio To Drive Growth

No-moat Mapletree Logistics Trust, or MLT, is acquiring a portfolio of logistics assets for a total acquisition cost of SGD 947 million. The portfolio comprises six properties in Japan and one property each in Australia and South Korea. We are largely positive on this transaction, given that the assets are located in attractive logistics markets with favorable market demand and supply dynamics. We also like that the Australian and South Korean assets have in-built annual rental escalation of 3% and 1.5%, respectively, while the existing leases in Japan and Australia are below current market rents by 3% to 10%, based on the company’s guidance. We think that this will support long-term organic rental growth for the trust.