In This Article:
Assessing the Sustainability of Mapletree Logistics Trust's Dividend
Mapletree Logistics Trust (MAPGF) recently announced a dividend of $0.02 per share, payable on 2024-03-20, with the ex-dividend date set for 2024-01-31. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Mapletree Logistics Trust's dividend performance and assess its sustainability.
What Does Mapletree Logistics Trust Do?
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Mapletree Logistics Trust is a real estate investment trust focusing on logistics properties. As of March 31, 2023, the trust had a SGD 12.8 billion portfolio of 185 properties, spread across Singapore, Hong Kong, Japan, China, South Korea, Australia, Malaysia, Vietnam, and India. The trust is externally managed by Mapletree Logistics Trust Management Ltd, a subsidiary of Mapletree Investments Pte Ltd, which owns around a 32% stake in the trust.
A Glimpse at Mapletree Logistics Trust's Dividend History
Mapletree Logistics Trust has maintained a consistent dividend payment record since 2011. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Mapletree Logistics Trust's Dividend Yield and Growth
As of today, Mapletree Logistics Trust currently has a 12-month trailing dividend yield of 6.09% and a 12-month forward dividend yield of 6.12%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Mapletree Logistics Trust's annual dividend growth rate was 3.60%. Extended to a five-year horizon, this rate increased to 5.30% per year. And over the past decade, Mapletree Logistics Trust's annual dividends per share growth rate stands at 3.00%.
Based on Mapletree Logistics Trust's dividend yield and five-year growth rate, the 5-year yield on cost of Mapletree Logistics Trust stock as of today is approximately 7.88%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-12-31, Mapletree Logistics Trust's dividend payout ratio is 0.88, which may suggest that the company's dividend may not be sustainable.