- The expiry of the AT&T leases (2nd largest tenant contributing 5% of revenues over 2HFY24 and end FY25) is a key focus area, with the manager actively looking to re-let part / most of its space. We understand that the manager has been able to attract new tenants, which will compensate for the risk of income loss. We have priced in 50% occupancy downtime in our estimates.
Resilient earnings ahead of expectations
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- The overall revenue increase was contributed by a stronger portfolio performance with occupancy rates inching higher to 92.3% while portfolio weighted average rental reversions was a positive 10.7%.
- Mapletree Industrial Trust's capital management strategies remained effective, keeping cost of debt stable at 3.2% (flat q-o-q), which remains below our projection of 3.5% for the year. We note that income from joint-ventures declined 15% y-o-y in 1HFY25 to S$ 15.7mil mainly due to the expiry of interest rate hedges.
Our view
Resilient financial metrics.
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