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Mapletree Industrial Trust (SG:ME8U)
SGX:ME8U
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Mapletree Industrial
(SGX:ME8U)
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Rating:70Outperform
Price Target:
S$2.00
▼(-5.66% Downside)
Mapletree Industrial's strong financial performance and attractive valuation are key strengths. However, technical indicators suggest neutral market sentiment, and concerns about declining revenue growth and negative free cash flow growth slightly offset these positives.
Positive Factors
Negative Factors
Mapletree Industrial (ME8U) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
$6.05B
Dividend Yield6.33%
Average Volume (3M)8.20M
Price to Earnings (P/E)17.8
Beta (1Y)0.60
Revenue Growth0.24%
EPS Growth193.35%
CountrySG
Employees186
SectorReal Estate
Sector Strength53
IndustryREIT - Industrial
Share Statistics
EPS (TTM)0.04
Shares Outstanding2,852,575,000
10 Day Avg. Volume8,114,082
30 Day Avg. Volume8,201,744
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.53
Enterprise Value/Revenue13.40
Enterprise Value/Gross Profit21.00
Enterprise Value/Ebitda19.04
Forecast
1Y Price Target
$2.54Price Target Upside19.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
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 the leasing of its industrial properties. The trust earns rental income from tenants across various sectors, including technology, manufacturing, and logistics. Additionally, the trust benefits from capital appreciation of its properties, which can be realized through strategic asset enhancement initiatives or property divestments. The trust's revenue is also supported by its partnership with Mapletree Investments Pte Ltd, which provides management expertise and operational support, contributing to the efficient management and growth of the portfolio.
Mapletree Industrial Earnings Call Summary
Earnings Call Date:Jul 28, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with both positive and negative aspects. Key highlights included an increase in net property income, improved occupancy, and successful acquisition in Tokyo. However, challenges such as lease expiries, reduced rental rates for AT&T, and increased borrowing costs were also significant. The sentiment is balanced with notable achievements offset by existing challenges.Q2-2025 Updates
Positive Updates
Increased Net Property Income
Net property income increased by 4.6% year-on-year to S$134.5 million, driven largely by contributions from the Osaka Data Centre and new and renewal leases.
Portfolio Occupancy Improvement
Overall portfolio occupancy increased from 91.9% to 92.2%, primarily due to the commencement of the Vanderbilt lease.
Rental Revision Success
The company achieved a 10.7% rental revision across all property segments, attributed to leases signed during the COVID period at lower rents.
Successful Acquisition in Tokyo
Completed the acquisition of a new property in Tokyo, with ongoing discussions for securing power for future redevelopment.
Distribution Reinvestment Plan
Successfully retained S$16.6 million through the distribution reinvestment plan, aiding in leverage mitigation.
Negative Updates
AT&T Lease Extension at Lower Rate
Extended the AT&T lease for 17 months at a 20% lower rental rate compared to the first extension, due to tenant's operational shifts.
Challenges with Lease Expiries
Facing lease expiries in North America with tenants such as Vanguard and Centersquare, leading to potential downtime and lower rental reversions.
Increased Borrowing Costs
Borrowing costs increased by 3% due to higher expenses related to the Osaka Data Centre and non-replacement of interest rate hedges.
Decreased NAV Per Unit
NAV per unit decreased by S$0.04 to S$0.0172, mainly due to a decline in the valuation of financial derivatives and a weaker US dollar.
Kallang Way Occupancy Slow Progress
Kallang Way's committed occupancy only increased by 1 percentage point to 54.5%, indicating slow progress in filling the space.
Company Guidance
In the second quarter of the fiscal year 2024-2025, MIT reported a 4.6% year-on-year increase in net property income to S$134.5 million, primarily driven by the Osaka Data Centre and new leases. The distribution per unit (DPU) rose by 1.5% year-on-year to S$0.0337, despite a 1.7% quarter-on-quarter decline due to higher property taxes and borrowing costs. The average portfolio occupancy improved from 91.9% to 92.2%, largely due to the Vanderbilt lease, although this lease is currently in a rent-free period. Rental revisions achieved an average increase of 10.7%, with some segments, like flatted factories, seeing up to 26.1% increases. The company also completed a property acquisition in Tokyo and retained S$16.6 million through a distribution reinvestment plan, reducing total debt to S$3 billion and maintaining an aggregate leverage ratio of 39.1%. The average borrowing cost was reported at 3.2%, with 80.4% of loans hedged. The management remains focused on filling vacancies, highlighted by the 17-month lease extension with AT&T, and is exploring options for further growth and acquisitions.Mapletree Industrial Financial Statement Overview
Summary
Mapletree Industrial demonstrates strong profitability with high EBIT and net profit margins. The balance sheet is stable with a moderate debt-to-equity ratio. However, declining revenue growth and negative free cash flow growth are concerns.Income Statement
Mapletree Industrial's income statement shows strong profitability with a high EBIT margin of 70.37% and a net profit margin of 50.16% for the TTM period. However, there is a slight decline in revenue growth rate, which is a concern. The company has maintained stable gross profit margins over the years, indicating effective cost management.75
Positive
Balance Sheet
The balance sheet reflects a moderate debt-to-equity ratio of 0.63, indicating a balanced approach to leveraging. The return on equity is relatively low at 6.67%, suggesting room for improvement in generating returns for shareholders. The equity ratio is healthy, showing a strong equity base relative to total assets.70
Positive
Cash Flow
Cash flow analysis reveals a stable operating cash flow to net income ratio of 0.81, indicating efficient cash generation relative to earnings. However, the free cash flow growth rate is negative, which could impact future liquidity. The free cash flow to net income ratio is nearly 1, showing effective conversion of earnings to cash.68
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 689.66M | 681.06M | 697.33M | 611.19M | 553.70M | 447.20M |
| Gross Profit | 440.07M | 434.22M | 456.61M | 443.25M | 414.69M | 350.25M |
| EBITDA | 485.37M | 480.25M | 306.26M | 406.67M | 408.64M | 309.20M |
| Net Income | 345.95M | 345.16M | 120.51M | 291.11M | 439.22M | 164.50M |
Balance Sheet | ||||||
| Total Assets | 8.67B | 8.80B | 8.66B | 8.55B | 8.48B | 6.39B |
| Cash, Cash Equivalents and Short-Term Investments | 109.25M | 107.63M | 119.90M | 146.61M | 149.64M | 60.46M |
| Total Debt | 3.23B | 3.27B | 3.08B | 2.88B | 2.94B | 2.27B |
| Total Liabilities | 3.55B | 3.61B | 3.38B | 3.17B | 3.20B | 2.50B |
| Stockholders Equity | 5.11B | 5.19B | 5.29B | 5.38B | 5.28B | 3.90B |
Cash Flow | ||||||
| Free Cash Flow | 473.16M | 488.26M | 432.78M | 448.06M | 497.04M | 236.71M |
| Operating Cash Flow | 473.35M | 488.26M | 432.78M | 448.06M | 497.08M | 236.80M |
| Investing Cash Flow | -184.85M | -207.24M | -353.13M | -100.61M | -1.75B | -527.20M |
| Financing Cash Flow | -308.07M | -293.47M | -106.34M | -350.46M | 1.35B | 297.67M |
Mapletree Industrial Technical Analysis
Positive
2.12
Price Trends
2.06
Positive
2.00
Positive
2.01
Positive
Market Momentum
0.02
Positive
57.99
Neutral
15.00
Positive
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 2.12 is below the 20-day moving average (MA) of 2.12, above the 50-day MA of 2.06, and above the 200-day MA of 2.01, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 57.99 is Neutral, neither overbought nor oversold. The STOCH value of 15.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:ME8U.
Mapletree Industrial Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | S$12.77B | 17.36 | 7.41% | 5.47% | 2.35% | 365.31% | |
74 Outperform | S$7.44B | 12.74 | 6.18% | 5.63% | ― | ― | |
70 Outperform | $6.05B | 17.80 | 6.88% | 6.33% | 0.24% | 193.35% | |
70 Outperform | S$5.35B | 14.43 | 8.92% | 4.23% | 23.81% | 89.13% | |
69 Neutral | S$4.75B | 20.65 | 4.75% | 5.19% | 1.49% | 5.99% | |
57 Neutral | S$6.19B | 31.33 | 2.22% | 1.46% | -10.52% | -39.75% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
SG:ME8U
Mapletree Industrial
2.12
-0.16
-7.06%
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2.78
0.08
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6.87
1.58
29.92%
SG:J69U
Frasers Centrepoint
2.34
0.17
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Keppel DC REIT
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SG:N2IU
Mapletree Commercial
1.42
0.03
2.23%
Mapletree Industrial Corporate Events
Mapletree Industrial Trust Issues New Units for Management Fees
Aug 7, 2025
Mapletree Industrial Trust has issued 848,721 new units to its manager as a base fee for managing its properties, including 29 data centers in the United States and a data center in Osaka, Japan. This issuance reflects the trust’s ongoing strategy to manage and expand its portfolio, potentially impacting its operational efficiency and stakeholder value.
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 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.
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.