Mapletree Industrial Trust - Maybank Research 2023-10-30: Slowing Momentum

• Mapletree Industrial Trust (SGX:ME8U) reported 2QFY24 (Jul to Sep 2023) DPU of S$0.0332, -2.1% q-o-q, -1.2% y-o-y. Higher expenses and borrowing costs as well as larger number of units more than offset the resilient operational performance and effect of capital top ups.

Declining distribution but stable portfolio metrics

• - Read this at SGinvestors.io -
• We lower our estimates and trim our DDM based target price for Mapletree Industrial Trust by 6% to S$2.15.

Resilient operations offset by high costs

• - Read this at SGinvestors.io -
• Portfolio NPI margins fell ~0.4% y-o-y/3% q-o-q. Deterioration was broad based across all property segments expect for flatted factories.
• Increase in borrowing cost was mitigated by JPY debt in the mix. In fact, funding cost declined by 30bps q-o-q to 3.2%.
• However, distribution of divestment gains and higher distribution from joint ventures led to distributable income of S$94.1m, +0.4% q-o-q, +3.5% y-o-y. This was offset by higher bases of units resulting in lower DPU of S$0.0332, -2.1% q-o-q, -1.2% y-o-y. See Mapletree Industrial Trust's dividend dates.

Manufacturing shoots, transitional vacancy for US data centres

• Read more at SGinvestors.io.

Krishna Guha Maybank Research | https://www.maybank-ke.com.sg/ 2023-10-30 SGinvestors.io

---