Mapletree Industrial Trust - Maybank Research 2024-07-30: Ramping Up Data Centre; Rebalancing The Portfolio

• Mapletree Industrial Trust (SGX:ME8U) reported 1QFY25 DPU of S$3.43 cts, +2.1% q-o-q /1.2% y-o-y. Contribution from Osaka data centre, positive rental reversions from SG portfolio, and capital top-up of S$3.35m underpinned the resilient DPU.
• - Read this at SGinvestors.io -
• Earlier, management revised its disposition target to S$200-500m. Mapletree Industrial Trust will resume distribution re-investment plan (DRP) in 1QFY25. Our estimates and DDM-based Mapletree Industrial Trust target price remain unchanged. Maintain HOLD.

Ramp up data centre AUM

• In line with its sponsor’s growth strategy, Mapletree Industrial Trust will continue to ramp up its data centre AUM.
• - Read this at SGinvestors.io -

Defensive portfolio, stable fundamentals

• Mapletree Industrial Trust's 1QFY25 revenue dipped 1.9% q-o-q while rose 2.7% y-o-y. Higher NPI margins across most sub-segments contributed to NPI uplift. Portfolio occupancy inched up by 50bps in 1Q25 to 91.9%.
• The highlight is on higher occupancy at its North America portfolio (+1.6pt). Reversion readings showed a welcome pick-up in rental growth in 1Q25 (+9.2%), the highest since 1Q24.
• Flatted factories and business parks registered 12.3%/11.5% reversions, respectively, and 7.9%/2.7% for ramp-up and hi-tech buildings.

Sailing with the wind

• Read more at SGinvestors.io.

Li Jialin Maybank Research | https://www.maybank-ke.com.sg/ 2024-07-30 SGinvestors.io

---