Mapletree Industrial (ME8U) AI Stock Analysis

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Mapletree Industrial

(SGX:ME8U)

Rating:62Neutral

Price Target:―

Mapletree Industrial's overall score reflects a strong financial performance and cash flow generation capability, which are its primary strengths. However, its technical indicators suggest a neutral to slightly bearish sentiment, and the high P/E ratio indicates potential overvaluation. The attractive dividend yield offers some support, but caution is advised due to the increasing debt levels and revenue fluctuations.

Positive Factors

Asset Management

Asset value unlocking through divestment of three industrial properties in Singapore for a premium over valuation and above capital invested.

Growth Strategy

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 Rates

Rising refinancing rates could negatively impact distributions, though the impact is minimized as a significant portion of interest cost is fixed.

Lease Expirations

A portion of MINT's US portfolio lease expiries are unlikely to renew their leases, which could result in some frictional vacancy within its portfolio.

Mapletree Industrial (ME8U) vs. iShares MSCI Singapore ETF (EWS)

Market Cap

$5.50B

Dividend Yield6.9%

Average Volume (3M)8.45M

Price to Earnings (P/E)16.3

Beta (1Y)0.61

Revenue Growth1.34%

EPS Growth195.50%

CountrySG

Employees186

SectorReal Estate

Sector Strength60

IndustryREIT - Industrial

Share Statistics

EPS (TTM)0.02

Shares Outstanding2,851,726,300

10 Day Avg. Volume7,987,010

30 Day Avg. Volume8,447,207

Financial Highlights & Ratios

PEG Ratio0.09

Price to Book (P/B)1.07

Price to Sales (P/S)0.00

P/FCF Ratio11.63

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$2.28

Price Target Upside18.06% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering6

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: -2.82%|

Next Earnings Date:Jul 29, 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

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Very Positive

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.

Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Breakdown
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
	EBIT
465.00M	454.63M	406.61M	408.58M	309.13M
	EBITDA
480.25M	306.26M	406.67M	408.64M	309.20M
	Net Income Common Stockholders
345.16M	120.51M	291.11M	439.22M	164.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
107.63M	119.90M	146.61M	149.64M	60.46M
	Total Assets
8.80B	8.66B	8.55B	8.48B	6.39B
	Total Debt
3.27B	3.08B	2.88B	2.94B	2.27B
	Net Debt
3.16B	2.96B	2.73B	2.79B	2.21B
	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

Technical Analysis Sentiment

Negative

Last Price1.93

Price Trends

50DMA

1.97

Negative

100DMA

2.01

Negative

200DMA

2.14

Negative

Market Momentum

MACD

-0.02

Negative

RSI

47.43

Neutral

STOCH

26.67

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:ME8U, the sentiment is Negative. The current price of 1.93 is above the 20-day moving average (MA) of 1.93, below the 50-day MA of 1.97, and below the 200-day MA of 2.14, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 47.43 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:ME8U.

Mapletree Industrial Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ME8U	62 Neutral	$5.50B	16.33	6.85%	6.90%	1.34%	195.50%
Sector *	61 Neutral	$2.83B	10.92	0.41%	8438.90%	5.75%	-21.03%
ACDSF		$9.22B	15.64	7.61%	5.66%	―	―
CDEVF		$3.70B	25.57	2.21%	1.48%	―	―
FRZCF		$3.40B	20.84	5.08%	5.13%	―	―
KPDCF		$3.86B	13.57	10.67%	4.03%	―	―
MPCMF		$4.87B	11.17	6.29%	6.46%	―	―

* Real Estate Sector Average

Performance Comparison

SG:ME8U

Mapletree Industrial

1.93

-0.12

-5.81%

ACDSF

CapitaLand Ascendas REIT

2.01

0.29

16.86%

CDEVF

City Developments

4.07

0.07

1.75%

FRZCF

Frasers Centrepoint

1.76

0.24

15.79%

KPDCF

Keppel DC REIT

1.74

0.61

53.98%

MPCMF

Mapletree Commercial

0.93

0.06

6.90%

Mapletree Industrial Corporate Events

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.

Mapletree Industrial Trust Secures US$100 Million Sustainability-Linked Facility

Mar 28, 2025

Mapletree Industrial Trust has secured a new US$100 million sustainability-linked facility, which includes conditions that could impact its debt facilities if breached. The potential breach could affect S$3,882.4 million in debt facilities, highlighting the importance of maintaining management continuity and alignment with its sponsor, Mapletree Investments.

Mapletree Industrial Trust Secures New Sustainability-Linked Facility

Mar 14, 2025

Mapletree Industrial Trust Management Ltd. has announced that DBS Trustee Limited, as trustee of Mapletree Industrial Trust, has entered into a new S$100 million sustainability-linked facility. This agreement includes conditions that, if breached, could affect S$3,764.3 million of the Trust’s debt facilities, potentially impacting its financial stability.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.