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Mapletree Industrial Trust (SG:ME8U)
SGX:ME8U
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Mapletree Industrial
(SGX:ME8U)
Rating:76Outperform
Price Target:
S$2.00
▼(-1.96%Downside)
Positive Factors
Divestment Strategy
Asset value unlocking through divestment of three industrial properties in Singapore for a premium over valuation and above capital invested.
Growth Initiatives
Well timed acquisitions, a diversified and expanding platform coupled with active lease-up of newly completed developments are set to drive growth.
Negative Factors
Interest Rate Impact
Rising refinancing rates could negatively impact distributions, though the impact is minimized as a significant portion of interest cost is fixed.
Lease Expiry Challenges
The leases for three data centres at 2000 Kubach Road in Philadelphia, 400 Holger Way in San Jose and 250 Williams Street in Atlanta are unlikely to be renewed.
Mapletree Industrial (ME8U) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
$5.76B
Dividend Yield6.59%
Average Volume (3M)9.35M
Price to Earnings (P/E)17.1
Beta (1Y)0.60
Revenue Growth1.34%
EPS Growth195.50%
CountrySG
Employees186
SectorReal Estate
Sector Strength57
IndustryREIT - Industrial
Share Statistics
EPS (TTM)0.02
Shares Outstanding2,851,726,300
10 Day Avg. Volume11,099,650
30 Day Avg. Volume9,350,781
Financial Highlights & Ratios
PEG Ratio-0.59
Price to Book (P/B)1.19
Price to Sales (P/S)0.00
P/FCF Ratio14.29
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$2.28Price Target Upside11.71% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Mapletree Industrial Business Overview & Revenue Model
Company DescriptionMapletree Industrial Trust is a real estate investment trust ("REIT") listed on the Main Board of Singapore Exchange. Its principal investment strategy is to invest in a diversified portfolio of income-producing real estate used primarily for industrial purposes in Singapore and income-producing real estate used primarily as data centres worldwide beyond Singapore, as well as real estate-related assets. As at 30 September 2020, MIT's total assets under management was S$6.6 billion, which comprised 84 properties in Singapore and 27 properties in North America (including 13 data centres held through the joint venture with Mapletree Investments Pte Ltd). MIT's property portfolio include Data Centres, Hi-Tech Buildings, Business Park Buildings, Flatted Factories, Stack-up/Ramp-up Buildings and Light Industrial Buildings. MIT is managed by Mapletree Industrial Trust Management Ltd. and sponsored by Mapletree Investments Pte Ltd.
How the Company Makes MoneyMapletree Industrial Trust generates revenue primarily through leasing its industrial properties to a wide range of tenants across various industries. Rental income is the key revenue stream, as the trust enters into long-term lease agreements with tenants, providing a stable and predictable cash flow. Additionally, Mapletree Industrial Trust may also benefit from appreciation in property values, which can enhance asset value and future rental income potential. Strategic acquisitions and developments, such as expanding into data centers, further contribute to its earnings by tapping into high-demand sectors. The trust's revenue is also supported by its active asset management strategy, which focuses on enhancing property value and tenant retention through property upgrades and efficient management practices.
Mapletree Industrial Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q2-2025)
| % Change Since: 2.72%|
Next Earnings Date:Jul 28, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed sentiment, with several positive developments such as increased net property income, improved occupancy rates, and successful rental revisions. However, these were offset by challenges like the lower rental rate for the AT&T lease extension, a decrease in NAV, difficulties in filling Kallang Way, and higher operational costs.Q2-2025 Updates
Positive Updates
Increased Net Property Income
Net property income increased by 4.6% year-on-year to $134.5 million, largely due to contributions from the Osaka Data Centre and new leases.
Occupancy Rate Improvement
Average portfolio occupancy increased from 91.9% to 92.2%, driven by the commencement of the Vanderbilt lease.
Successful Rental Revisions
Achieved a rental revision rate of 10.7% across all property segments, with some leases seeing increases as high as 26.1%.
Distribution Reinvestment Plan Success
Successfully retained $16.6 million through the distribution reinvestment plan, aiding in reducing leverage.
Completion of Tokyo Acquisition
Completed the acquisition of a new property in Tokyo, which is expected to provide significant future IT load capacity.
Negative Updates
AT&T Lease Extension at Lower Rent
AT&T lease extended for 17 months at a 20% lower rental rate compared to the first extension due to market conditions.
Decline in Net Asset Value
NAV per unit decreased by $0.04 to $0.0172 due to a decline in the valuation of financial derivatives and a weaker U.S. dollar.
Challenges in Filling Kallang Way
Occupancy at Kallang Way increased only by 1 percentage point this quarter to 54.5%, with significant competition in the market.
Higher Borrowing and Maintenance Costs
Incurred higher property taxes, marketing costs, and higher borrowing costs related to the Osaka Data Centre.
Potential Downtime for Expiring Leases
Faced potential downtime for the expiring leases in Phoenix and Vanguard, affecting future revenue.
Company Guidance
During the Q2 2025 earnings call for ME8U.SI, several key financial metrics and operational updates were discussed. The company reported a net property income increase of 4.6% year-on-year, reaching $134.5 million, primarily driven by contributions from the Osaka Data Centre. The distribution per unit (DPU) was announced at $0.0337, marking a 1.5% year-on-year increase. The overall portfolio occupancy improved from 91.9% to 92.2%, with significant contributions from the North American portfolio, particularly the Vanderbilt lease. However, the company faced challenges such as higher borrowing costs and property taxes. The aggregate leverage ratio stood at 39.1%, expected to rise to about 40% post-completion of the Tokyo acquisition. Additionally, the company extended its lease with AT&T for 17 months, though at a rental rate close to the initial lease, reflecting a 20% decrease compared to the first extension. The management also highlighted a positive rental revision of 10.7% across all property segments, driven largely by leases signed during the COVID period.Mapletree Industrial Financial Statement Overview
Summary
Mapletree Industrial presents a solid financial profile with strong profitability and cash flow generation. While its balance sheet is stable, attention should be paid to the increasing debt levels. Overall, the company is well-positioned financially, though slight revenue fluctuations warrant close monitoring.Income Statement
Mapletree Industrial has demonstrated consistent revenue and profit growth over the years. The gross profit margin and net profit margin are strong, indicating effective cost management. However, a slight decline in revenue in the latest year signals a need for cautious optimism.78
Positive
Balance Sheet
The company maintains a healthy balance sheet with a solid equity base and a manageable debt-to-equity ratio. However, the debt level has been increasing, which could pose a risk if not managed carefully.75
Positive
Cash Flow
Strong operating and free cash flows underscore the company's robust cash generation capabilities. The stable free cash flow growth rate and healthy cash flow ratios indicate sound financial health.82
Very Positive
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 681.06M | 697.33M | 611.19M | 553.70M | 447.20M |
| Gross Profit | 434.22M | 456.61M | 443.25M | 414.69M | 350.25M |
| EBITDA | 480.25M | 306.26M | 406.67M | 408.64M | 309.20M |
| Net Income | 345.16M | 120.51M | 291.11M | 439.22M | 164.50M |
Balance Sheet | |||||
| Total Assets | 8.80B | 8.66B | 8.55B | 8.48B | 6.39B |
| Cash, Cash Equivalents and Short-Term Investments | 107.63M | 119.90M | 146.61M | 149.64M | 60.46M |
| Total Debt | 3.27B | 3.08B | 2.88B | 2.94B | 2.27B |
| Total Liabilities | 3.61B | 3.38B | 3.17B | 3.20B | 2.50B |
| Stockholders Equity | 5.19B | 5.29B | 5.38B | 5.28B | 3.90B |
Cash Flow | |||||
| Free Cash Flow | 488.26M | 432.78M | 448.06M | 497.04M | 236.71M |
| Operating Cash Flow | 488.26M | 432.78M | 448.06M | 497.08M | 236.80M |
| Investing Cash Flow | -207.24M | -353.13M | -100.61M | -1.75B | -527.20M |
| Financing Cash Flow | -293.47M | -106.34M | -350.46M | 1.35B | 297.67M |
Mapletree Industrial Technical Analysis
Positive
2.04
Price Trends
1.96
Positive
1.98
Positive
2.11
Negative
Market Momentum
0.02
Negative
67.41
Neutral
84.85
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:ME8U, the sentiment is Positive. The current price of 2.04 is above the 20-day moving average (MA) of 1.97, above the 50-day MA of 1.96, and below the 200-day MA of 2.11, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 67.41 is Neutral, neither overbought nor oversold. The STOCH value of 84.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:ME8U.
Mapletree Industrial Peers Comparison
Overall Rating
UnderperformOutperform
Sector (70)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $5.76B | 17.09 | 6.85% | 6.59% | 1.34% | 195.50% | |
70 Neutral | ¥231.55B | 14.14 | 10.67% | 19.67% | 17.32% | 17.90% | |
| $9.66B | 16.14 | 7.61% | 4.85% | ― | ― | ||
| $3.73B | 25.88 | 2.21% | 1.51% | ― | ― | ||
| $3.58B | 20.72 | 5.08% | 4.01% | ― | ― | ||
| $4.04B | 13.57 | 10.67% | 1.04% | ― | ― | ||
| $5.21B | 11.80 | 6.29% | 4.77% | ― | ― |
* Real Estate Sector Average
Performance Comparison
SG:ME8U
Mapletree Industrial
2.04
0.06
2.87%
ACDSF
CapitaLand Ascendas REIT
2.08
0.32
18.18%
CDEVF
City Developments
4.22
0.36
9.33%
FRZCF
Frasers Centrepoint
1.76
0.28
18.92%
KPDCF
Keppel DC REIT
1.74
0.46
35.94%
MPCMF
Mapletree Commercial
1.00
0.14
16.28%
Mapletree Industrial Corporate Events
Mapletree Industrial Trust Secures New Loan Facility with Conditional Terms
Jun 16, 2025
Mapletree Industrial Trust has entered into a new loan facility agreement, guaranteed by DBS Trustee Limited, which includes conditions similar to its existing debt facilities. If the manager resigns or is removed without a suitable replacement, or if the manager ceases to be a subsidiary of Mapletree Investments, lenders may cancel commitments and demand immediate repayment of outstanding notes, impacting the trust’s financial obligations.
The most recent analyst rating on (SG:ME8U) stock is a Buy with a S$2.28 price target. To see the full list of analyst forecasts on Mapletree Industrial stock, see the SG:ME8U Stock Forecast page.
Mapletree Industrial Trust Issues New Units for Manager’s Fee
May 13, 2025
Mapletree Industrial Trust Management Ltd. announced the issuance of 791,027 new units in Mapletree Industrial Trust to pay the manager’s base fee for managing its properties for the quarter ended 31 March 2025. This issuance reflects the company’s strategic focus on expanding its data center portfolio, with significant investments in the United States and Japan, enhancing its market position and offering potential growth opportunities for stakeholders.
The most recent analyst rating on (SG:ME8U) stock is a Hold with a S$2.45 price target. To see the full list of analyst forecasts on Mapletree Industrial stock, see the SG:ME8U Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.