Mapletree merger not win-win for MCT unitholders
Add BT as a preferred sourceTHE proposed merger between Mapletree Commercial Trust (MCT) and Mapletree North Asia Commercial Trust (MNACT) is being presented as a win-win deal. The reality though is that MCT holders are being asked to approve the acquisition of an underperforming real estate investment trust (Reit) at a hefty premium.
While MCT has demonstrated steady growth over the years, MNACT's performance has been choppy - as seen by data on MNACT's own website and in the appendix of the presentation shared by both Reits. For instance, MCT's distribution per unit has grown by an average of 4.8 per cent per annum since its initial public offering. MNACT's, on the other hand, has increased by just 1.9 per cent.
MNACT has a much higher gearing, and its listed units have greatly underperformed MCT's.
TRENDING NOW
Asia-Pacific aviation: is up really the only way?
Russia’s ‘pivot to Asia’ takes a turn as it prioritises ties with isolated regimes over bigger economies
Why disciplined stewardship matters when managing wealth in uncertain markets
More than 15,000 sign up for national accounting body’s AI programme in two months
