SGX:N2IU

Stock Analysis Report

Mapletree Commercial Trust

Executive Summary

Mapletree Commercial Trust is a Singapore-focused real estate investment trust (“REIT”) that invests on a long-term basis, directly or indirectly, in a diversified portfolio of income-producing real estate used primarily for office and/or retail purposes, whether wholly or partially, in Singapore, as well as real estate related assets.

Rewards

Trading at 8.6% below its fair value

Revenue is forecast to grow 8.56% per year

Earnings grew by 56.9% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -16.1% per year for the next 3 years

Unstable dividend track record

Large one-off items impacting financial results



Snowflake Analysis

Proven track record and fair value.


Similar Companies

Share Price & News

How has Mapletree Commercial Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: N2IU has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.2%

N2IU

-0.03%

SG REITs

-0.3%

SG Market


1 Year Return

37.3%

N2IU

16.7%

SG REITs

2.1%

SG Market

Return vs Industry: N2IU exceeded the SG REITs industry which returned 16.1% over the past year.

Return vs Market: N2IU exceeded the SG Market which returned 2.1% over the past year.


Shareholder returns

N2IUIndustryMarket
7 Day-1.2%-0.03%-0.3%
30 Day3.4%3.8%1.4%
90 Day3.4%1.2%2.8%
1 Year44.1%37.3%23.8%16.7%6.3%2.1%
3 Year89.9%61.5%52.5%26.0%14.9%2.6%
5 Year108.3%58.3%57.2%14.1%11.1%-7.4%

Price Volatility Vs. Market

How volatile is Mapletree Commercial Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Mapletree Commercial Trust undervalued compared to its fair value and its price relative to the market?

1.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: N2IU (SGD2.48) is trading below our estimate of fair value (SGD2.71)

Significantly Below Fair Value: N2IU is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: N2IU is good value based on its PE Ratio (8.1x) compared to the REITs industry average (15.3x).

PE vs Market: N2IU is good value based on its PE Ratio (8.1x) compared to the SG market (13.5x).


Price to Earnings Growth Ratio

PEG Ratio: N2IU's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: N2IU is overvalued based on its PB Ratio (1.5x) compared to the SG REITs industry average (1x).


Next Steps

Future Growth

How is Mapletree Commercial Trust forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

-14.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: N2IU's earnings are forecast to decline over the next 3 years (-16.1% per year).

Earnings vs Market: N2IU's earnings are forecast to decline over the next 3 years (-16.1% per year).

High Growth Earnings: N2IU's earnings are forecast to decline over the next 3 years.

Revenue vs Market: N2IU's revenue (8.6% per year) is forecast to grow faster than the SG market (5.6% per year).

High Growth Revenue: N2IU's revenue (8.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: N2IU's Return on Equity is forecast to be low in 3 years time (6.1%).


Next Steps

Past Performance

How has Mapletree Commercial Trust performed over the past 5 years?

22.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: N2IU has a large one-off gain of SGD642.0M impacting its September 30 2019 financial results.

Growing Profit Margin: N2IU's current net profit margins are higher than last year .


Past Earnings Growth Analysis

Earnings Trend: N2IU's earnings have grown significantly by 22.3% per year over the past 5 years.

Accelerating Growth: N2IU's earnings growth over the past year (56.9%) exceeds its 5-year average (19% per year).

Earnings vs Industry: N2IU earnings growth over the past year (56.9%) exceeded the REITs industry 7.1%.


Return on Equity

High ROE: N2IU's Return on Equity (18.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Mapletree Commercial Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: N2IU has a high level of physical assets or inventory.

Debt Coverage by Assets: N2IU's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

Asset Level: N2IU's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if N2IU has a sufficient allowance for bad loans.

Low Risk Liabilities: N2IU reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if N2IU has an acceptable proportion of non-loan assets held.

Low Risk Deposits: N2IU has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if N2IU has an appropriate level of bad loans.


Next Steps

Dividend

What is Mapletree Commercial Trust's current dividend yield, its reliability and sustainability?

3.76%

Current Dividend Yield


Dividend Yield vs Market

company3.8%marketbottom25%2.4%markettop25%5.5%industryaverage5.1%forecastin3Years4.0%

Current dividend yield vs market & industry

Notable Dividend: N2IU's dividend (3.69%) is higher than the bottom 25% of dividend payers in the SG market (2.5%).

High Dividend: N2IU's dividend (3.69%) is low compared to the top 25% of dividend payers in the SG market (5.41%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, N2IU has been paying a dividend for less than 10 years.

Growing Dividend: N2IU's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (78.3%), N2IU's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: N2IU's dividends in 3 years are forecast to be thoroughly covered by earnings (0.03% payout ratio).


Next Steps

Management

What is the CEO of Mapletree Commercial Trust's salary, the management and board of directors tenure and is there insider trading?

5.1yrs

Average board tenure


CEO

Sharon Lim (46yo)

4.4yrs

Tenure

0

Ms. Hwee Li Lim, also known as Sharon, has been the Chief Executive Officer and Executive Director at Mapletree Commercial Trust Management Ltd since August 1, 2015. Ms. Lim served as the Chief Operating O ...


Board Age and Tenure

5.1yrs

Average Tenure

62yo

Average Age

Experienced Board: N2IU's board of directors are considered experienced (5.1 years average tenure).


Insider Trading

Insider Buying: N2IU insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellS$119,00003 Dec 19
Schroder Investment Management Limited
EntityCompany
Shares50,000
Max PriceS$2.38
BuyS$19,616,41402 Dec 19
Fullerton Fund Management Company Ltd.
EntityCompany
Shares8,072,600
Max PriceS$2.43
BuyS$2,98815 Nov 19
Hwee Li Lim
EntityIndividual
Role
Chief Executive Officer
Executive Director & CEO
Shares1,334
Max PriceS$2.24
BuyS$12,260,92815 Nov 19
Temasek Holdings (Private) Limited
EntityCompany
Shares5,473,630
Max PriceS$2.24
BuyS$63,26415 Nov 19
Yam Pui Tsang
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman of the Board
Shares28,243
Max PriceS$2.24
SellS$470,00005 Nov 19
Schroder Investment Management Limited
EntityCompany
Shares200,000
Max PriceS$2.35
SellS$3,083,47801 Oct 19
DBS Group Holdings Limited, Asset Management Arm
EntityCompany
Shares1,350,744
Max PriceS$2.28
BuyS$644,00124 Sep 19
DBS Group Holdings Limited, Asset Management Arm
EntityCompany
Shares300,000
Max PriceS$2.15
SellS$570,75216 Sep 19
Fullerton Fund Management Company Ltd.
EntityCompany
Shares254,800
Max PriceS$2.24
SellS$123,96809 Jul 19
Schroder Investment Management Limited
EntityCompany
Shares59,600
Max PriceS$2.08
SellS$6,21008 Jul 19
Schroder Investment Management (Singapore) Ltd
EntityCompany
Shares3,000
Max PriceS$2.07
SellS$2,355,95908 May 19
Temasek Holdings (Private) Limited
EntityCompany
Shares1,200,000
Max PriceS$1.96
BuyS$560,01012 Apr 19
Temasek Holdings (Private) Limited
EntityCompany
Shares300,000
Max PriceS$1.87
SellS$173,88005 Apr 19
Schroder Investment Management Limited
EntityCompany
Shares92,000
Max PriceS$1.89

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Kwong Weng Wan

    Joint Company Secretary of Mapletree Commercial Trust Management Ltd

    • Sharon Lim (46yo)

      Executive Director & CEO

      • Tenure: 4.4yrs
    • Hui Hui See

      Joint Company Secretary of Mapletree Commercial Trust Management Ltd

      • Janica Tan (49yo)

        Chief Financial Officer of Mapletree Commercial Trust Management Ltd

        • Tenure: 3.4yrs
      • Wee Leong Koh

        Head of Investments & Asset Management - Mapletree Commercial Trust Management Limited

        • Teng Li Yeng

          VP of Investor Relations & Director of Investor Relations

          • Joanna Lee

            Head of Retail Management - Mapletree Commercial Property Management Pte. Ltd

            • Pui Chay

              Vice President of Marketing

              • Charissa Wong

                Director of Mapletree Commercial Property Management & Head of Retail Management


                Board Members

                • Premod Paul Thomas (61yo)

                  Independent Non-Executive Director

                  • Tenure: 4.6yrs
                  • Compensation: S$82.50k
                • Jennifer Loh (66yo)

                  Independent Non-Executive Director

                  • Tenure: 8.8yrs
                  • Compensation: S$95.00k
                • Yoon Khong Hiew (58yo)

                  Non-Executive Director

                  • Tenure: 12.7yrs
                • Yam Pui Tsang (73yo)

                  Non-Executive Chairman of the Board

                  • Compensation: S$135.00k
                • Sharon Lim (46yo)

                  Executive Director & CEO

                  • Tenure: 4.4yrs
                • Amy Ng

                  Non-Executive Director of Mapletree Commercial Trust Management Ltd

                  • Tenure: 9yrs
                • Shik Lum Kan (65yo)

                  Independent Non-Executive Director

                  • Tenure: 4.1yrs
                  • Compensation: S$72.50k
                • Cheng Chua Koh (57yo)

                  Independent Non-Executive Director

                  • Tenure: 5.6yrs
                  • Compensation: S$82.50k
                • Kim Li Kwa (62yo)

                  Lead Independent Non-Executive Director

                  • Tenure: 4yrs
                  • Compensation: S$85.00k
                • Alvin Tay (64yo)

                  Independent Non-Executive Director

                  • Compensation: S$16.26k

                Company Information

                Mapletree Commercial Trust's company bio, employee growth, exchange listings and data sources


                Key Information

                • Name: Mapletree Commercial Trust
                • Ticker: N2IU
                • Exchange: SGX
                • Founded: 2005
                • Industry: Retail REITs
                • Sector: Real Estate
                • Market Cap: S$8.068b
                • Shares outstanding: 3.31b
                • Website: https://www.mapletreecommercialtrust.com

                Location

                • Mapletree Commercial Trust
                • 10 Pasir Panjang Road
                • No. 13-01 Mapletree Business City
                • Singapore
                • 117438
                • Singapore

                Listings

                TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                N2IUSGX (Singapore Exchange)YesUnitsSGSGDApr 2011
                MPCM.FOTCPK (Pink Sheets LLC)YesUnitsUSUSDApr 2011

                Biography

                Mapletree Commercial Trust is a Singapore-focused real estate investment trust (“REIT”) that invests on a long-term basis, directly or indirectly, in a diversified portfolio of income-producing real estate used primarily for office and/or retail purposes, whether wholly or partially, in Singapore, as well as real estate related assets. MCT’s portfolio comprises VivoCity, MBC I, PSA Building, Mapletree Anson and MLHF. These five assets have a total NLA of 3.8 million square feet with a total value of S$7,350 million. 


                Company Analysis and Financial Data Status

                All financial data provided by Standard & Poor's Capital IQ.
                DataLast Updated (UTC time)
                Company Analysis2020/01/23 13:01
                End of Day Share Price2020/01/23 00:00
                Earnings2019/12/31
                Annual Earnings2019/03/31


                Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.