Nasdaq
华尔街日报Mapletree Pan Asia Commercial Trust's (SGX:N2IU) top owners are private equity firms with 56% stake, while 32% is held by individual investors
Key Insights
- 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
- 56% of the company is held by a single shareholder (Temasek Holdings (Private) Limited)
- 12% of Mapletree Pan Asia Commercial Trust is held by Institutions
To get a sense of who is truly in control of Mapletree Pan Asia Commercial Trust (SGX:N2IU), it is important to understand the ownership structure of the business. We can see that private equity firms own the lion's share in the company with 56% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
And individual investors on the other hand have a 32% ownership in the company.
Let's take a closer look to see what the different types of shareholders can tell us about Mapletree Pan Asia Commercial Trust.
See our latest analysis for Mapletree Pan Asia Commercial Trust
What Does The Institutional Ownership Tell Us About Mapletree Pan Asia Commercial 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.
We can see that Mapletree Pan Asia Commercial Trust does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Mapletree Pan Asia Commercial Trust, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Mapletree Pan Asia Commercial Trust. Looking at our data, we can see that the largest shareholder is Temasek Holdings (Private) Limited with 56% of shares outstanding. This implies that they have majority interest control of the future of the company. Meanwhile, the second and third largest shareholders, hold 1.9% and 1.3%, of the shares outstanding, respectively.
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. 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
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 data suggests that insiders own under 1% of Mapletree Pan Asia Commercial Trust in their own names. 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$7.4m worth of shares. 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 56%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - Mapletree Pan Asia Commercial Trust has 4 warning signs (and 2 which are a bit unpleasant) we think you should know about.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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.