Brokers' take

Mapletree Logistics Trust > Hold OCBC Investment Research, March 24 Target price: S$1.06 March 24 close: S$1.085

MAPLETREE Logistics Trust (MLT) recently announced that it has completed the divestment of its 20, Old Toh Tuck Road, property at a sale consideration of S$14.25 million - an attractive price, in our view. Looking ahead, management has signalled to the market that it will continue to explore opportunities to recycle its capital. This would involve divesting its older properties with less modern specifications and/or lower yields and redeploying capital.

At current price level, which we believe is fair, MLT is trading at FY17F and FY18F distribution yields of 6.8 per cent and 7.0 per cent, respectively.