- 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:
- redevelop the site, or
- 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.
