Mapletree Log Tr Last:1.19

+0.01

MapleTreeLog

If Trump elected China economy may shrink a few percents 😳 😳

chubbybastard ( Date: 24-Oct-2024 14:16) Posted:

This is a good move from Mapletree Logistics to shrink its China portfolio. China may take many years to recover.

luckyguy3 ( Date: 24-Oct-2024 13:09) Posted:

Mapletree Log now cutting exposure to China but Mapletree Pan get rid of singapore asset instead of cutting off china assets

Both management should comm with each other

At this level, I will go long instead of shorting.

" Hong Kong stocks rise as China property sales return to growth "

https://www.scmp.com/business/china-business/article/3284723/hong-kong-stocks-rise-china-property-sales-return-growth

" Fed seen on track to cut rates next week and in December "

https://www.reuters.com/markets/rates-bonds/traders-stick-bets-25-bps-fed-rate-cuts-nov-dec-2024-10-31/

This is a good move from Mapletree Logistics to shrink its China portfolio. China may take many years to recover.

luckyguy3 ( Date: 24-Oct-2024 13:09) Posted:

Mapletree Log now cutting exposure to China but Mapletree Pan get rid of singapore asset instead of cutting off china assets

Both management should comm with each other

Wise move to rejuvenate portfolio, with more divestments.

Joelton ( Date: 24-Oct-2024 11:40) Posted:

Mapletree Logistics Trust to shrink China footprint to rejuvenate portfolio

MLT&rsquo s manager sees potential opportunities in emerging markets such as Vietnam and India

MAPLETREE Logistics Trust (MLT), whose earnings have been weighed down by an economic slowdown in China, plans to divest about S$1 billion worth of its assets &ndash of which about half will be from China and Hong Kong.

The remaining assets identified for divestment are from Malaysia and Singapore, with a smaller proportion from Australia, Japan and South Korea.

Jean Kam, the chief executive officer of the trust&rsquo s manager, said on Wednesday (Oct 23) that these countries have assets which are &ldquo no longer relevant&rdquo to MLT&rsquo s portfolio.

&ldquo They don&rsquo t fit with our strategy and don&rsquo t have much potential for redevelopment,&rdquo she said during a briefing on the trust&rsquo s latest financial results.

She did not specify a timeline for the divestments&rsquo completion, but said it would depend on market conditions and demand from buyers.

The manager is also waiting for the market to recover so that it can divest assets at a better price particularly in the China and Hong Kong markets. Kam said that it is looking to divest its China assets at an exit yield of around 4 per cent, which will allow it to achieve returns on its assets.

On Tuesday, the Singapore-listed real estate investment trust, or S-Reit, posted a 10.6 per cent drop in its distribution per unit and a 1.8 per cent dip in revenue for the second quarter ended Sep 30. The Reit manager attributed the fall to higher borrowing costs and lower revenue contributions from China.

&ldquo Close to halfway mark&rdquo for this year&rsquo s divestment target

Elaborating on MLT&rsquo s divestment strategy during the briefing, Kam said that about one-third of the S$1 billion divestment target, or around S$300 million, is set to be completed in the current financial year ending Mar 31, 2025.

The Reit manager is &ldquo close to the halfway mark&rdquo of its divestment target for this financial year. So far, it has divested eight assets amounting to about S$130 million across three countries &ndash Singapore, Malaysia and China.

The remaining half of its divestment target for the period is currently under exclusive negotiations, including one asset in China, said Kam. The manager will announce the divestment of this asset this quarter, she added.

Proceeds from the divestments will help MLT rejuvenate its portfolio, she said.

The CEO added that the manager is actively looking out for accretive acquisitions and sees potential opportunities in emerging markets such as Vietnam and India. It is also eyeing developed markets like Japan, which offers a positive yield spread despite rising interest costs.

Currently, around 40 per cent of MLT&rsquo s assets under management are from China and Hong Kong, while Japan makes up 14.6 per cent. Vietnam comprises close to 3 per cent and India makes up 0.7 per cent.

Positive outlook on China

Despite China&rsquo s weak property market and domestic consumption, Kam said that MLT&rsquo s manager maintains a positive outlook on the country.

It has a large population base that is increasingly urban and has a high savings rate. This could potentially boost demand for properties, said Kam.

&ldquo So I think in the long term, (China) still offers very healthy economic fundamentals, and China still remains an important market for MLT,&rdquo she said.

The manager was also upbeat on the outlook for MLT&rsquo s rental reversions in China. The Reit&rsquo s portfolio achieved positive rental reversions across most markets in Q2, except for China, which registered negative rental reversion of minus 12.2 per cent.

James Sung, head of asset management at the Reit manager, said that he expects rental reversions in China to &ldquo hover&rdquo around its current level for the next two quarters before improving towards a negative single digit.

However, when the rental reversions would become positive is &ldquo anybody&rsquo s guess&rdquo . He said that factors such as consumer sentiment and economic support from the Chinese government would influence any uptick in reversions.