Stock Analysis

While private equity firms own 32% of Mapletree Logistics Trust (SGX:M44U), individual investors are its largest shareholders with 45% ownership

SGX:M44U
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To get a sense of who is truly in control of Mapletree Logistics Trust (SGX:M44U), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 45% to be precise, is individual investors. Put another way, the group faces the maximum upside potential (or downside risk).

Meanwhile, private equity firms make up 32% of the company’s shareholders.

Let's take a closer look to see what the different types of shareholders can tell us about Mapletree Logistics Trust.

See our latest analysis for Mapletree Logistics Trust

ownership-breakdown
SGX:M44U Ownership Breakdown April 13th 2022

What Does The Institutional Ownership Tell Us About Mapletree Logistics Trust?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Mapletree Logistics 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Mapletree Logistics Trust's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
SGX:M44U Earnings and Revenue Growth April 13th 2022

We note that hedge funds don't have a meaningful investment in Mapletree Logistics Trust. Our data shows that Temasek Holdings (Private) Limited is the largest shareholder with 32% of shares outstanding. BlackRock, Inc. is the second largest shareholder owning 4.8% of common stock, and The Vanguard Group, Inc. holds about 2.5% of the company stock.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 24 shareholders, meaning that no single shareholder has a majority interest in the ownership.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Mapletree Logistics Trust

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 most recent data indicates that insiders own less than 1% of Mapletree Logistics Trust. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own S$1.6m worth of shares. Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 45% stake in Mapletree Logistics Trust. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Equity Ownership

With a stake of 32%, private equity firms could influence the Mapletree Logistics Trust board. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. To that end, you should learn about the 3 warning signs we've spotted with Mapletree Logistics Trust (including 1 which is concerning) .

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.