Mapletree Industrial Trust - OCBC Investment 2019-10-23: Hi-Tech Segment The Clear Bright Spot

MAPLETREE INDUSTRIAL TRUST (SGX:ME8U) | SGinvestors.io MAPLETREE INDUSTRIAL TRUST (SGX:ME8U)

Mapletree Industrial Trust - Hi-Tech Segment The Clear Bright Spot

  • Mapletree Industrial Trust's 2QFY20 DPU rose 4.0% y-o-y.
  • Only Hi-Tech space saw positive rental reversions.
  • Unchanged S$2.55 fair value.



2QFY20 results in-line with our expectations



Rental reversions still soft, as previously guided

  • Operationally, rental reversions for Mapletree Industrial Trust’s renewal leases remained subdued in 2QFY20, but this was well guided by management during the previous quarter. Conditions may improve in 3QFY20, although uncertainties will continue to linger.
  • Only the Hi-Tech Buildings space saw positive rental reversions (+2.6%) in 2QFY20, while Business Park Buildings fared the worst (-9.2%) as Mapletree Industrial Trust is still trying to backfill the space vacated by some of its larger tenants which left previously. For the Flatted Factories and Stack-Up/Ramp-Up Buildings, rental reversions were -2.2% and -0.7%, respectively.
  • Portfolio occupancy in Singapore saw a slight decline of 0.3 ppt q-o-q to 90.2%, due largely to a dip in Light Industrial Buildings (-10.3 ppt).


Paring down debt first with private placement proceeds






OCBC Research Team OCBC Investment Research | https://www.iocbc.com/ 2019-10-23
SGX Stock Analyst Report HOLD MAINTAIN HOLD 2.550 SAME 2.550



Advertisement



MOST TALKED ABOUT STOCKS / REITS OF THE WEEK



loading.......



ANALYSTS SAY


loading.......