Mapletree Industrial Trust - OCBC Investment 2024-10-30: Good Results But Upcoming Non-renewals To Deal With

• We believe Mapletree Industrial Trust offers investors a proxy to the fast-growing digitalisation and data outsourcing trends, and expect management to continue to shift its portfolio mix towards more data centres as compared to old economy industrial assets.
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2QFY25 DPU rose 1.5% y-o-y to 3.37 Singapore cents and met our expectations

• Mapletree Industrial Trust’s 2QFY25 results were in-line with our expectations. Gross revenue and net property income (NPI) rose 4.2% and 4.6% y-o-y to S$181.4m and S$134.5m, respectively. This was attributed to contribution from its Osaka Data Centre that was acquired in Sep 2023, organic growth from positive rental reversions achieved previously, but partially offset by divestments and loss of income from the non-renewal of leases in North America.
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• Cumulatively, Mapletree Industrial Trust’s 1HFY25 NPI increased by 2.9% y-o-y to S$267.0m, while DPU inched up 1.3% to 6.80 Singapore cents, with the latter accounting for 49.4% of our initial FY25 forecast.

Robust portfolio weighted average rental reversions of 10.7% for renewal leases in Singapore

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OCBC Research Team OCBC Investment Research | https://www.iocbc.com/ 2024-10-30 SGinvestors.io

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