MAPLETREE INDUSTRIAL TRUST (SGX:ME8U)
Mapletree Industrial Trust - Diversifying Growth
Growth from US data centres
- Mapletree Industrial Trust (SGX:ME8U) delivered a strong 2Q22, as DPU rose 11.9% y-o-y/3.6% q-o-q, with the consolidation of its 14 US data centres and contributions from the recent US portfolio acquisition and 8011 Villa Park Drive (in Virginia, US). The performance was in line with our estimates and the street, and our forecasts remain unchanged.
- Mapletree Industrial Trust boasts stronger fundamentals with improved DPU visibility from its rising data centre tenancies. Its balance sheet is strong and we see further DPU-accretive deals, as management advances diversification efforts to deepen data centre concentration to 50-67% of AUM.
- Our DDM-based target price (COE: 5.9%, LTG: 2.0%) for Mapletree Industrial Trust stays at S$3.35. BUY.
Lower occupancy, larger US AUM
- Mapletree Industrial Trust's portfolio occupancy was lower at 93.7% (from 94.3% in 1Q22), as it fell in the US from 97.8% to 93.9%, with the addition of the 29 data centre portfolio in Jul, which was 87.8% occupied. The assets’ long 7.6-year WALE extended its portfolio WALE from 3.7 years to 4.3.
- In Singapore, occupancy increased slightly from 93.4% to 93.6%, underpinned by improvements for flatted factories (91.0% to 92.0%) and light industrial buildings (78.7% to 83.1%). Leasing remains competitive for its older business park assets (from 83.6% to 82.6%) due to tenant downsizing.
Stable rents, recovery from 2H22
- Gross rents in Singapore rose 4.9% y-o-y and were flat bottom out in 2H22.
Data centre AUM set to rise further
- Mapletree Industrial Trust's gearing think management is eyeing acquisition growth from more sizeable deals (in US and Europe), as it aims to deepen its data centre core and further diversify its AUM.
- See
Chua Su Tye
Maybank Kim Eng Research
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https://www.maybank-ke.com.sg/
2021-10-27
SGX Stock
Analyst Report
3.350
SAME
3.350
