MAPLETREE INDUSTRIAL TRUST (SGX:ME8U)
Mapletree Industrial Trust - Growth Resumes
- Mapletree Industrial Trust's 3QFY21 DPU grew 3.8% y-o-y.
- Portfolio occupancy up but rental reversions broadly negative.
- Healthy aggregate leverage ratio of 37.3%.
Mapletree Industrial Trust's 3QFY21 results in-line with our expectations
- Mapletree Industrial Trust (SGX:ME8U) reported its 3QFY21 results which came in within our expectations. Gross revenue and NPI jumped 20.5% and 20.8% y-o-y to S$123.7m and S$98.9m, respectively. This was largely due to the consolidation of revenue from the 14 data centres in the US which it acquired the remaining stake from its sponsor.
- Mapletree Industrial Trust's 3QFY21 DPU grew 3.8% y-o-y to 3.28 cents.
- For 9MFY21, Mapletree Industrial Trust’s NPI increased 8.1% y-o-y to S$259.2m but DPU declined slightly by 1.5% to 9.25 cents and the latter formed 75.8% of our FY21 forecast.
- S$9m of rental reliefs have been granted to tenants for 9MFY21, of which S$1.9m was given in 3QFY21. This was a moderation as compared to the first two quarters of Mapletree Industrial Trust’s financial year.
Improvement in portfolio occupancy but rental reversions remain negative
- Operationally, Mapletree Industrial Trust’s portfolio occupancy improved by 0.8 percentage points (ppt) q-o-q to 93.1%, as the 0.7 ppt increase in Singapore to 92.2% was partially offset by a 0.4 ppt decline to 97.6% in the US.
- Rental reversions for renewal leases came in broadly negative in 3QFY21. This was -10.0% for Business Park Buildings, -4.5% for Stack-Up/Ramp-up Buildings, -2.7% for Flatted Factories and -1.7% for Hi- Tech Buildings. The larger than usual negative rental reversions for its Business Park Buildings segment was due to a one-off tenant support, excluding which rental reversions would have been around -5%.
- Looking ahead, management expects rental reversions to remain negative for the next 2-3 quarters, with pressure largely coming from its Flatted Factories segment.
Remains on lookout for acquisitions, supported by its strong balance sheet
- Mapletree Industrial Trust’s financial position remains solid, with a healthy aggregate leverage ratio of 37.3% (-0.8 ppt q-o-q). It remains on the lookout for more inorganic growth opportunities, and is still under negotiation for a potential data centre acquisition in Virginia, US.
- Mapletree Industrial Trust also provided an update on its Kolam Ayer 2 redevelopment project, whereby it expects construction costs to be higher at S$300m due to the effects of COVID-19, versus an estimated S$263m previously. From our understanding, management is targeting a yield on cost above 7% for this project, as compared to its previous 8% guidance.
- See Mapletree Industrial Trust Share Price; Mapletree Industrial Trust Target Price; Mapletree Industrial Trust Analyst Reports; Mapletree Industrial Trust Dividend History; Mapletree Industrial Trust Announcements; Mapletree Industrial Trust Latest News.
- We maintain our forecasts and S$3.51 fair value estimate on Mapletree Industrial Trust.
OCBC Research Team
OCBC Investment Research
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https://www.iocbc.com/
2021-02-01
SGX Stock
Analyst Report
3.510
SAME
3.510
