Company Coverage
Mapletree Industrial Trust: 1QFY27: Painstaking Repositioning Of Portfolio Underway
HOLD (Maintained)
Current price:
Target price:
Upside:
S$1.93
S$2.07
+7.3%
Analyst
Highlights
- The Singapore portfolio achieved broad-based weighted average rental reversion of 5.3% in 1QFY27 (general industrial buildings: +6.4%, hi-tech buildings & business space: +3.0%).
- 7337 Trade Street at San Diego in California with NLA of 499,402sf is currently vacant after lease expiry in May 26. The full impact of the nonrenewal would be felt in 2QFY27.
- Aggregate leverage increased 3.5ppt qoq to 37.5% as of Jun 26 following the drawdown of debt to redeem S$300m of perpetual securities.
- Smaller data centres serving enterprise customers accounted for 23.7% of gross rental income. Maintain HOLD and target price of S$2.07.
Analysis
- Mapletree Industrial Trust (MINT) reported DPU of 3.11 cents for 1QFY27 (-4.9% yoy but +0.6% qoq), in line with our expectation. NPI fell 8.5% yoy, primarily due to the absence of income from three Singapore industrial properties divested in Aug 25, non-renewal of data centre leases in North America and the depreciation of the US dollar and Japanese yen against the Singapore dollar. Lower borrowing costs resulting from debt repayment using divestment proceeds also helped to cushion the decline.
- Singapore portfolio remains the key stabiliser. Occupancy in the Singapore portfolio improved 0.9ppt qoq to 94.3% in 1QFY27. Occupancy at Mapletree Hi-Tech Park @ Kallang Way improved 1ppt qoq to 66.5% and is on track to hit 70% soon. MINT achieved positive rental reversions across all Singapore property segments, with weighted average rental reversion of 5.3% (general industrial buildings: +6.4%, hi-tech buildings & business space: +3.0%). Tenant retention was healthy at 87.9%. The Japan portfolio
remained fully occupied, providing earnings stability.
Highlights
- The Singapore portfolio achieved broad-based weighted average rental reversion of 5.3% in 1QFY27 (general industrial buildings: +6.4%, hi-tech buildings & business space: +3.0%).
- 7337 Trade Street at San Diego in California with NLA of 499,402sf is currently vacant after lease expiry in May 26. The full impact of the nonrenewal would be felt in 2QFY27.
- Aggregate leverage increased 3.5ppt qoq to 37.5% as of Jun 26 following the drawdown of debt to redeem S$300m of perpetual securities.
- Smaller data centres serving enterprise customers accounted for 23.7% of gross rental income. Maintain HOLD and target price of S$2.07.
Analysis
- Mapletree Industrial Trust (MINT) reported DPU of 3.11 cents for 1QFY27 (-4.9% yoy but +0.6% qoq), in line with our expectation. NPI fell 8.5% yoy, primarily due to the absence of income from three Singapore industrial properties divested in Aug 25, non-renewal of data centre leases in North America and the depreciation of the US dollar and Japanese yen against the Singapore dollar. Lower borrowing costs resulting from debt repayment using divestment proceeds also helped to cushion the decline.
- Singapore portfolio remains the key stabiliser. Occupancy in the Singapore portfolio improved 0.9ppt qoq to 94.3% in 1QFY27. Occupancy at Mapletree Hi-Tech Park @ Kallang Way improved 1ppt qoq to 66.5% and is on track to hit 70% soon. MINT achieved positive rental reversions across all Singapore property segments, with weighted average rental reversion of 5.3% (general industrial buildings: +6.4%, hi-tech buildings & business space: +3.0%). Tenant retention was healthy at 87.9%. The Japan portfolio
remained fully occupied, providing earnings stability.
HOLD (Maintained)
Current price:
Target price:
Upside:
S$1.93
S$2.07
+7.3%
Analyst
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