- Mapletree Industrial Trust (SGX:ME8U) is acquiring a mixed-use industrial facility in Tokyo, Japan for JPY14.5b (~S$127.8m). The freehold asset bodes redevelopment potential when the existing lease rolls off. We like the potential upside from the redevelopment potential, and an NPI yield of 4%, which offers downside protection.
Acquisition asset within existing data-centre cluster
- - Read this at SGinvestors.io -
- The redevelopment scenario assumes non-renewal in 5 years and a data centre to be built by 2033/ 2034. Management guided for 30-40MW of potential IT load and 5.5-6% yield-on-cost for a powered shell data centre.
- The site is located within a data-centre cluster in west Tokyo, which accounts for ~40% of total IT supply in Greater Tokyo. The current land zoning for the site allows for development of a data centre.
Financed by JPY-denominated loan
- - Read this at SGinvestors.io -
- Mapletree Industrial Trust resumed DRP (distribution reinvestment plan) in 1Q24. The proceeds from DRP could reduce the gearing progressively.
- In our view, it’s more likely Mapletree Industrial Trust could execute its divestment pipeline of S$200-400m in the next 12 months, given a more favourable transaction market.
Portfolio reconstitution gaining momentum
- Read more at SGinvestors.io.
Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @ https://www.maybanktrade.com.sg/.
Li Jialin Maybank Research | https://www.maybank-ke.com.sg/ 2024-10-02
Previous report by Maybank:
2024-07-30 Mapletree Industrial Trust - Ramping Up Data Centre; Rebalancing The Portfolio.
Price targets by 2 other brokers at Mapletree Industrial Trust Target Prices.
Listing of research reports at Mapletree Industrial Trust Analyst Reports.
Relevant links:
Mapletree Industrial Trust Share Price History,
Mapletree Industrial Trust Announcements,
Mapletree Industrial Trust Dividends & Corporate Actions,
Mapletree Industrial Trust News Articles
