The considerable ownership by private equity firms in Mapletree Pan Asia Commercial Trust indicates that they collectively have a greater say in management and business strategy
The largest shareholder of the company is Temasek Holdings (Private) Limited with a 57% stake
A look at the shareholders of Mapletree Pan Asia Commercial Trust (SGX:N2IU) can tell us which group is most powerful. With 57% stake, private equity firms possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Individual investors, on the other hand, account for 32% of the company's stockholders.
Let's delve deeper into each type of owner of Mapletree Pan Asia Commercial Trust, beginning with the chart below.
What Does The Institutional Ownership Tell Us About Mapletree Pan Asia Commercial Trust?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
Mapletree Pan Asia Commercial Trust already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Mapletree Pan Asia Commercial Trust's historic earnings and revenue below, but keep in mind there's always more to the story.
SGX:N2IU Earnings and Revenue Growth February 19th 2025
We note that hedge funds don't have a meaningful investment in Mapletree Pan Asia Commercial Trust. The company's largest shareholder is Temasek Holdings (Private) Limited, with ownership of 57%. This implies that they have majority interest control of the future of the company. The Vanguard Group, Inc. is the second largest shareholder owning 1.9% of common stock, and BlackRock, Inc. holds about 1.5% of the company stock.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of Mapletree Pan Asia Commercial Trust
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our information suggests that Mapletree Pan Asia Commercial Trust insiders own under 1% of the company. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around S$4.5m worth of shares (at current prices). It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.
General Public Ownership
The general public-- including retail investors -- own 32% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Equity Ownership
With an ownership of 57%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Mapletree Pan Asia Commercial Trust better, we need to consider many other factors. For instance, we've identified 2 warning signs for Mapletree Pan Asia Commercial Trust (1 is concerning) that you should be aware of.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
