Mapletree Industrial Trust - UOB Kay Hian 2025-02-12: Weathering The Bumpy Ride

• The leases for 3 data centres at 2000 Kubach Road in Philadelphia, 400 Holger Way in San Jose and 250 William Street in Atlanta are unlikely to be renewed. Our worst-case scenario with the data centres staying vacant provides FY26 DPU of 13.2 cents and target price of S$2.65.
• There would be downtime whether the data centres are re-leased or deployed for alternative usage.

What's new?

• - Read this at SGinvestors.io -

Tenant Vanguard has vacated 2000 Kubach Road in Philadelphia as its lease had expired in Dec 24.

• The data centre generated gross revenue of S$8.2m and accounted for 1.2% of Mapletree Industrial Trust’s gross revenue in FY24. The negative impact from non-renewal would be felt starting 4QFY25.
• - Read this at SGinvestors.io -

Tenant Centersquare is not expected to renew its lease at 400 Holger Way in San Jose when the lease expires in Aug 25.

• The data centre generated gross revenue of S$6.2m and accounted for 0.9% of Mapletree Industrial Trust’s gross revenue in FY24.
• Management has initiated a power study by engaging the utility provider and local authorities. Securing a larger power capacity would pave the way for the REIT to:
  1. redevelop the site, or
  2. divest the data centre at a higher valuation.

Tenant InComm is not expected to renew 225,000sf of office space when its lease expires in Feb 26.

• Read more at SGinvestors.io.

Jonathan KOH CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 2025-02-12 SGinvestors.io

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