SGX Dividend Income Opportunity: Mapletree Logistics Trust and Suntec REIT in Focus
This article is republished with permission from Tip Ranks .
04-Oct-2023
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SGX-listed companies Mapletree Logistics Trust (SG:M44U) and Suntec Real Estate Investment Trust (SG:T82U) present appealing dividend income opportunities for investors aiming to supplement their portfolios with additional income. In terms of capital appreciation, Mapletree Logistics has been rated as a Strong Buy with a potential growth rate of 15%, while Suntec REIT offers a higher upside potential of 24% with a Hold rating.
Let's take a look at these companies in detail.
Mapletree Logistics Trust (MLT) Dividend History
Based in Singapore, MLT is an Asia-focused REIT that invests in a diversified portfolio of high-quality, income-producing real estate in the rapidly growing Asia-Pacific logistics sector.
The company has witnessed an impressive nearly 30% increase in its distribution per unit (DPU) over the past nine years, from FY13 to FY22. MLT has a distribution policy to provide stable distributions, aiming to distribute at least 90% of its taxable income. These distributions are paid quarterly for the periods ending in March, June, September, and December each year. For the first quarter of FY23/24, the company announced a dividend of S$0.02271, marking a marginal increase of 0.1% from the payment of S$0.02268 for the corresponding period a year ago. The total dividend for FY22/23 was S$0.090.
The company currently has a dividend yield of 5.29%, putting it among the attractive income stocks on the SGX.
Is Mapletree Logistics a Good Buy?
According to TipRanks' rating consensus, M44U stock has a Strong Buy rating backed by four Buy and one Hold recommendations. The Mapletree Logistics share price target is S$1.88, which is 14.8% higher than the current price level.
Suntec REIT Dividend 2023
Suntec REIT owns a portfolio of income-generating commercial real estate properties primarily designated for office and/or retail purposes. The company’s property holdings are located in Singapore, the UK, and Australia.
The company has a current dividend yield of 6.5%, which is well covered by its earnings. For the second quarter ended on June 30, 2023, the company paid a dividend of S$0.017 in August 2023. For the first half of FY23, the total dividend paid was S$0.03476, which is 27.7% lower than the previous year. The decline reflected higher financing costs amid challenging economic conditions and weaker forex movements.
The company expects its financing costs to stay high in the second half of the year. To mitigate the impact, the company will proceed with the distribution of the remaining capital top-up for 2023 to offer support to unit holders during these challenging times.
Is Suntec REIT a Good Buy?
On TipRanks, T82U stock has been assigned a Hold rating based on two Hold recommendations. The Suntec REIT share price target is S$1.43, which is 24.3% higher than current trading levels.
