$Mapletree Log Tr (M44U.SG)$ Its important to taper the expe...
$Mapletree Log Tr (M44U.SG)$ Its important to taper the expectation of lower interest rate impact on MLT performance. While lower interest rate might boost the share price temporary based on sentiment, the main headwind is still the decline of its china properties, which according to experts, have not reach the bottom yet.
MLT weighted average interest rate is only 2.7% which is already lower than most reits, most likely due to more than 40% borrowing in low interest currency like yen and rmb. The appreciation in currency like yen and ringgit recently should help boost the NPI a bit but that also means that their loan in that currency is getting more expensive to service.
In summary, while lower interest rate could help to raise DPU, the impact will be very limited. If you can hold the reit for long term and wait for China property market to bottom out, its still a good reit to invest in.
Disclaimer - Do your own research. I hold a ton of reits and MLT is one of them.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Kind Pumpkin : how come still dropping? based on fed interest rate cuts shd be doing well
R and R OP Kind Pumpkin : Don't believe too much about what people say here that reit will go to the moon in Sept when rate is cut. If thats the case, reit should be ATH now since everyone already know about the rate cut long time ago.