On 12th March 2025, Mapletree Logistics Trust announced its proposal to divest its property at 31 Penjuru Lane at a sale price of S$7.8 million. The sale price of S$7.8 million is 6.8% above the latest valuation of S$7.3 million as of 28 November 2024. The proposed divestment is expected to be completed by 2Q FY25/26.
The property at 31 Penjuru Lane comprised of a three-storey warehouse with a building age of around 35 years, and a part 5-/part 10-storey warehouse cum ancillary office which is approximately 28 years old.
Why is Mapletree Logistics Trust divesting its properties? As shared in 1QFY24/25 financial results, the manager of Mapletree Logistics Trust is proactively rejuvenating its portfolio through
selective divestments of assets that are no longer aligned with its strategy. The capital released from the divestment will provide Mapletree Logistics Trust with greater financial flexibility to pursue investment opportunities in high specification, modern logistics facilities with higher growth potential.
In 3Q FY24/25, Mapletree Logistics Trust’s aggregate leverage stood high at 40.3%. I do hope the manager can use the proceeds from the divestments to par down some of its debt.
Mapletree Logistics Trust Share Price and Dividend Yield
Recently, Mapletree Logistics Trust share price had been on an uptrend and closed at S$1.29 on Tuesday, 18th March 2025. Based on the Mapletree Logistics Trust share price of S$1.29 and dividend of 9.003 cents in FY23, Mapletree Logistics Trust’s current dividend yield continue to stand high at 6.98%.
Do you know how to calculate the current dividend yield? The formula for calculating the current dividend yield is straightforward. It is calculated by dividing the annual dividends per share by the current market price per share. Here is the formula in mathematical terms:
Conclusion
Following the divestment, Mapletree Logistics Trust’s portfolio will consist of 176 properties which is down from the 183 properties as of 31st December 2024. With every portfolio rejuvenation, it will take time to see value delivered to unitholders.
Again, I reiterate and hope that the manager of Mapletree Logistics Trust can take a look at managing its growing aggregate leverage.