Mapletree Industrial Trust - Maybank Research 2024-01-28: Headwind From Us Datacentres

• Mapletree Industrial Trust (SGX:ME8U) reported 3QFY24 DPU of S$0.0336 (+1.2% q-o-q,-0.9% y-o-y). 9MFY24 DPU of S$0.1007, down 1.7% y-o-y and 76.5% of our full year estimate. Steady portfolio performance and contribution from new assets was offset by enlarged unit base. See Mapletree Industrial Trust's distribution dates.

Occupancy keeps slipping

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• While it is encouraging to see occupancy picking up in Mapletree Industrial Trust's Singapore hi-tech spaces, US data centres vacancy and absence of divestment gains will negatively impact DPUs.

Stable financial performance

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• Funding cost was stable helped by JPY debt. All in cost fell from 3.2% last quarter to 3.1%. However, debt cost is expected to rise to ~3.5% from repricing.
• Distributions from JV were stable at ~S$8.5m. While distribution rose 3.1% y-o-y for 3Q, enlarged number of Mapletree Industrial Trust units led to 0.9% decline in DPU.
• On a q-o-q basis, income from Osaka DC and new leases led to 1% higher NPI. Further, with lower borrowing cost and stable income from JV, distribution and DPU rose 1.2% q-o-q.

Mixed operating metrics

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Krishna Guha Maybank Research | https://www.maybank-ke.com.sg/ 2024-01-28 SGinvestors.io

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