Highlights

Simons Trading Research

Author: simonsg   |   Latest post: Mon, 8 Aug 2022, 9:09 AM

 

Mapletree Industrial Trust - Strengthening Operations

Author:   |    Publish date:


  • Mapletree Industrial Trust's 1QFY22 DPU of S$0.0335 was in line at 26% of our FY3/22F forecast.
  • Improved Singapore performance, new acquisitions to boost US income.
  • Reiterate ADD on with a higher DDM-based target price of S$3.16.

Mapletree Industrial Trust's 1QFY22 Results Highlights

  • Mapletree Industrial Trust (SGX:ME8U) reported a 29.2%/33.1% y-o-y rise in 1QFY3/22 revenue/NPI to S$128m/S$104.7m, respectively, due to the consolidation of 14 US data centres (DC) and Virginia DC as well as absence of rental reliefs. Property expenses rose at a slower pace, resulting in a higher NPI margin of 81.8%. 1Q DPU of 3.35 cents is 16.7% higher y-o-y.

Singapore Portfolio Occupancy Improved Q-o-q

  • Portfolio occupancy continued to tick the sale of 26A Ayer Rajah Crescent, Mapletree Industrial Trust intends to distribute the S$15.7m of net divestment gains over eight quarters, from 2QFY3/22.

New Acquisitions to Boost US Contributions in Coming Quarters

  • There was a slight improvement in occupancy of the US portfolio to 97.8% at end-1Q. We anticipate US contributions to increase from 2QFY22 with the completion of the acquisition of a portfolio of 29 US data centres in Jul 2021 for US$1.32bn. The purchase was funded through a S$823.3m equity fund raising and debt.
  • The data centre portfolio is 87.8% occupied with a long weighted average lease expiry of 7.9 years, and 89.4% of the leases have an inbuilt rental escalation of 1.5-3% p.a. With an estimated post acquisition gearing of 40%, we believe Mapletree Industrial Trust is well-placed to continue to tap into acquisition growth opportunities.
  • Meanwhile, the redevelopment of Kolam Ayer Cluster 2 is under way and is scheduled to be completed in 1H23.

Reiterate ADD Rating on Mapletree Industrial Trust

  • We tweak our FY22F DPU forecast for Mapletree Industrial Trust slightly to bake in some potential tenant divestment gains. Accordingly, our DDM-based target price for Mapletree Industrial Trust is raised to S$3.16.
  • Upside risk: better-than-projected rental reversions.
  • Downside risk: protracted recovery a longer recovery period in vacancies and rentals.

Source: CGS-CIMB Research - 28 Jul 2021

Share this

Related Stocks

Chart Stock Name Last Change Volume 
Mapletree Ind Tr 2.69 +0.01 (0.37%) 2,310,200 

  Be the first to like this.
 


APPS
I3 Messenger
Individual or Group chat with anyone on I3investor
 
 

176  206  223  588 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 Sembcorp Marine 0.118+0.003 
 HSI 21800MBeC.. 0.054-0.008 
 Acesian Partners 0.057-0.004 
 Eucon^ 0.063+0.004 
 HSI 21200MBeC.. 0.034-0.009 
 HSI 19600MBeP.. 0.083+0.001 
 Wilmar Intl 4.09-0.21 
 Oceanus^ 0.018+0.001 
 Logistics 0.054+0.005 
 CapitaMall Trust 2.10-0.03 
PARTNERS & BROKERS