'Sizeable' equity fund could put MLT's unit price under pressure: UOB Kay Hian

The proposed acquisitions will increase MLT’s assets under management (AUM) by 13.5% to $12.2 billion.

The portfolio includes seven logistics properties in China that are still undergoing stabilisation, whereby in-place rents and occupancy rates are below current market levels, notes Koh.

While the proposed acquisitions are estimated to be accretive to MLT’s FY2021 distribution per unit (DPU)by 2.2% on a pro forma basis, the “sizeable” equity fund raising could put the REIT’s unit price under pressure, he adds.

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Koh has kept his existing DPU forecasts unchanged for now.

“Accretive acquisitions [made] to rejuvenate and reposition towards modern specifications logistics facilities, domestic consumption and e-commerce [are catalysts to MLT’s share price],” says Koh.

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As at 12.30pm, units in MLT are trading 4 cents lower or 2.05% down at $1.91, or FY2022 P/B of 1.5 times and DPU yield of 4.4%.

Photo: MLT