Why Mapletree Industrial Trust Is My Favourite REIT of 2024

 

Mapletree Industrial Trust has been my favourite REIT of 2024. Here are 4 reasons Mapletree Industrial Trust is my favourite REIT of 2024. 

1. Reliable stable dividend payouts 

Mapletree Industrial Trust has been reliably paying out quarterly dividends since 2011 without fail. They have not missed a single dividend payout for almost 14 years. Furthermore, the dividend per share has been increasing almost yearly. You can rest assured of a reliable long-term quarterly dividend payout. This is particularly important as a long-term passive income investor where there's no need to constantly monitor your stocks. 

2. Attractive entry point and dividend yield 

At its current price of $2.21 (as of 16 Dec 2024), you can get a dividend yield of 6.12%. This is significantly higher than what most fixed deposits/bonds are currently offering. Moreover, there is a potential capital gain of 20+% in the long term when the share price goes up to $3 as global interest rates are falling. With this combination of attractive dividend yield and potential capital gain, it is difficult to miss this excellent investment opportunity. 

3. Good portfolio mix and occupancy rate 

Mapletree Industrial Trust has an Asset Under Management of $8.9 billion as of their latest investor update in Nov 2024. They have a diverse portfolio of 140 properties spread across Singapore (48.6%), North America (45.9%), and Japan (5.5%). These properties consist of data centers, hi-tech buildings, flatted factories, stack-up buildings, business park buildings, and light industrial buildings. Mapletree Industrial Trust has over 2,000 tenants with the largest tenant contributing only 6.0% of portfolio gross rental income. They have an occupancy rate of 92.9% across their entire property portfolio. Mapletree Industrial Trust well diversified tenant base and high occupancy rate essentially solidify its position as one of Singapore's top industrial REITs. 

4. Strong Sponsor 

Mapletree Industrial Trust has a strong sponsor in Mapletree Investments Pte Ltd. Mapletree Investments Pte Ltd is a property powerhouse in Singapore with total Assets Under Management (AUM) of $77.5 billion across 13 markets in Asia-Pacific, Europe, the UK and the US. With such a strong sponsor, you can rest assured that Mapletree Industrial Trust is in good management and will continue to acquire and diversify its property portfolio in the future.