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Mapletree Industrial Trust (SG:ME8U)
OTHER OTC:ME8U
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Mapletree Industrial
(OTC:ME8U)
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Rating:64Neutral
Price Target:
S$2.00
â–¼(-9.50% Downside)
Mapletree Industrial's overall stock score is driven by strong financial performance and attractive valuation. However, technical indicators suggest bearish momentum, and the earnings call reflects a mixed outlook with both opportunities and challenges. The company's ability to navigate these challenges will be crucial for future performance.
Positive Factors
Interest Rate Hedge
A strong interest rate hedge ratio provides stability against interest rate fluctuations, ensuring predictable financial costs and enhancing long-term financial planning.
Portfolio Occupancy
Stable occupancy rates indicate consistent demand for properties, supporting steady rental income and reducing vacancy risks, which is crucial for long-term revenue stability.
Rental Revisions in Singapore
Significant rental revisions in Singapore suggest strong market demand and pricing power, contributing to revenue growth and improved profitability over time.
Negative Factors
Declining Revenue Growth
A decline in revenue growth can hinder future expansion and investment capabilities, posing a challenge to maintaining competitive market positioning and financial performance.
Increased Operating Expenses
Rising operating expenses can compress profit margins, reducing overall profitability and limiting financial flexibility for future investments and growth initiatives.
Challenges in North American Portfolio
Challenges in the North American portfolio, such as lease nonrenewals and currency impacts, can affect revenue stability and growth prospects, requiring strategic adjustments.
Mapletree Industrial (ME8U) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
S$5.76B
Dividend Yield6.51%
Average Volume (3M)9.00M
Price to Earnings (P/E)17.4
Beta (1Y)0.54
Revenue Growth-1.96%
EPS Growth175.59%
CountrySG
Employees186
SectorReal Estate
Sector Strength53
IndustryREIT - Industrial
Share Statistics
EPS (TTM)0.03
Shares Outstanding2,853,365,500
10 Day Avg. Volume8,945,360
30 Day Avg. Volume8,999,595
Financial Highlights & Ratios
PEG Ratio-0.91
Price to Book (P/B)1.25
Price to Sales (P/S)9.49
P/FCF Ratio15.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
S$2.50Price Target Upside12.97% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.12
Revenue Forecast (FY)S$701.12M
Mapletree Industrial Business Overview & Revenue Model
Company DescriptionMapletree Industrial Trust (ME8U) is a leading real estate investment trust (REIT) based in Singapore, primarily focused on the ownership, development, and management of industrial properties. The trust invests in a diversified portfolio that includes logistics and distribution centers, business parks, and high-tech industrial spaces, catering to various sectors such as manufacturing, logistics, and data centers. Through strategic acquisitions and developments, Mapletree Industrial aims to provide sustainable income and capital appreciation to its unitholders.
How the Company Makes MoneyMapletree Industrial generates revenue primarily through the leasing of its industrial properties to tenants across different sectors. The company's revenue model is built on long-term leases, which provide stable and recurring rental income. Key revenue streams include rental income from properties, lease management fees, and property management services. Additionally, the trust may benefit from asset appreciation as the value of its properties increases over time. Significant partnerships with logistics and technology firms also enhance its earnings potential, as these sectors often require specialized industrial spaces. Furthermore, strategic initiatives such as redevelopment projects and value-added services contribute to its overall financial performance.
Mapletree Industrial Earnings Call Summary
Earnings Call Date:Oct 29, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jan 27, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted both improvements in distribution per unit and strong interest rate hedging, but these were offset by challenges such as decreased net property income, increased operating expenses, and potential impacts from interest rate swaps. While there are positive aspects, the challenges seem to balance them out, leading to a mixed overall outlook.Q2-2026 Updates
Positive Updates
Improved Distribution Per Unit
Distribution per unit increased by 5.6% to $0.0318, despite a decrease in overall distribution to unitholders by 5.3%.
Strong Interest Rate Hedge Ratio
Interest rate hedge ratio increased to close to 93%, providing stability against interest rate fluctuations.
Occupancy and Lease Renewals
Portfolio occupancy remained relatively stable at 91.3%, with successful lease renewals contributing to a weighted average revision of 3%.
Positive Rental Revisions in Singapore
Rental revisions in Singapore were encouraging, with a weighted average increase of 46.2%.
Negative Updates
Decrease in Net Property Income
Net property income decreased due to the divestment of 3 industrial properties in Singapore and nonrenewal of leases in North America.
Challenges in North American Portfolio
Lower contributions from the North American portfolio were noted due to nonrenewal of leases and weaker U.S. dollar.
Increased Operating Expenses
Higher operating expenses were observed in the North American and Singapore portfolios.
Potential Impact of Interest Rate Swaps
The impact of $600 million of interest rate swaps coming due could affect borrowing costs, expected to be around 3.1% to 3.4% for the next financial years.
Company Guidance
During the call, MIT provided detailed financial guidance, highlighting a mixed performance for the second quarter of Fiscal Year 2025-2026. The net property income saw a decline due to the divestment of three industrial properties in Singapore and reduced contributions from the North American portfolio, affected by lease nonrenewals and a weaker U.S. dollar. However, these were partially offset by recent acquisitions and completed fit-out works in Osaka. Borrowing costs decreased slightly, attributed to loan repayments from divestment proceeds and lower interest on unhedged floating rate loans, despite increased costs from the Japan portfolio. Consequently, the distribution to unitholders fell by 5.3% to $90.7 million, while the distribution per unit (DPU) rose by 5.6% to $0.0318. The aggregate leverage ratio improved to 37.3%, offering debt headroom for future growth opportunities. The interest rate hedge ratio increased to nearly 93%, with expectations for borrowing costs to average around 3.1% to 3.2% for the current financial year and 3.3% to 3.4% for the next, factoring in upcoming interest rate swaps. Occupancy rates remained stable at 91.3%, with a slight improvement in the Singapore portfolio. The call also touched upon future divestment plans in North America, targeting $500-600 million, and potential acquisitions in Europe and Asia, considering the favorable yield spread. Overall, the guidance reflects a cautious yet optimistic outlook, emphasizing strategic divestments and acquisitions to navigate current financial challenges.Mapletree Industrial Financial Statement Overview
Summary
Mapletree Industrial demonstrates strong profitability and a stable financial structure, though there are signs of slowing revenue growth and modest returns on equity. The company maintains a healthy balance sheet with moderate leverage and efficient cash flow management, positioning it well within the REIT - Industrial sector.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, the revenue growth rate has declined by 1.26%, indicating a potential slowdown in revenue generation. The company maintains solid gross profit margins, although slightly lower than previous years.72
Positive
Balance Sheet
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.63, indicating moderate leverage. The return on equity is relatively low at 6.67%, suggesting limited efficiency in generating returns from equity. The equity ratio stands at 59.01%, showcasing a strong equity base relative to total assets.68
Positive
Cash Flow
Cash flow analysis reveals a slight decline in free cash flow growth by 1.50%. The operating cash flow to net income ratio is 0.81, indicating adequate cash generation relative to net income. The free cash flow to net income ratio is nearly 1, reflecting efficient cash conversion from profits.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 678.54M | 681.06M | 611.19M | 697.33M | 553.70M | 447.20M |
| Gross Profit | 437.58M | 434.22M | 443.25M | 456.61M | 414.69M | 350.25M |
| EBITDA | 466.66M | 480.25M | 406.67M | 306.26M | 408.64M | 309.20M |
| Net Income | 338.46M | 345.16M | 291.11M | 120.51M | 439.22M | 164.50M |
Balance Sheet | ||||||
| Total Assets | 8.13B | 8.80B | 8.55B | 8.66B | 8.48B | 6.39B |
| Cash, Cash Equivalents and Short-Term Investments | 102.24M | 107.63M | 146.61M | 119.90M | 149.64M | 60.46M |
| Total Debt | 3.01B | 3.27B | 2.88B | 3.08B | 2.94B | 2.27B |
| Total Liabilities | 3.32B | 3.61B | 3.17B | 3.38B | 3.20B | 2.50B |
| Stockholders Equity | 4.81B | 5.19B | 5.38B | 5.29B | 5.28B | 3.90B |
Cash Flow | ||||||
| Free Cash Flow | 447.05M | 488.26M | 448.06M | 432.78M | 497.04M | 236.71M |
| Operating Cash Flow | 447.24M | 488.26M | 448.06M | 432.78M | 497.08M | 236.80M |
| Investing Cash Flow | 330.18M | -207.24M | -100.61M | -353.13M | -1.75B | -527.20M |
| Financing Cash Flow | -809.43M | -293.47M | -350.46M | -106.34M | 1.35B | 297.67M |
Mapletree Industrial Technical Analysis
Neutral
2.21
Price Trends
2.07
Negative
2.05
Negative
1.99
Positive
Market Momentum
>-0.01
Negative
46.76
Neutral
61.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:ME8U, the sentiment is Neutral. The current price of 2.21 is above the 20-day moving average (MA) of 2.03, above the 50-day MA of 2.07, and above the 200-day MA of 1.99, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.76 is Neutral, neither overbought nor oversold. The STOCH value of 61.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | S$5.36B | 13.50 | 10.81% | 4.53% | 23.81% | 89.10% | |
69 Neutral | S$4.64B | 21.84 | 4.49% | 5.29% | 10.82% | -5.02% | |
66 Neutral | S$7.60B | 11.00 | 7.32% | 5.50% | -6.34% | 49.60% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | S$5.76B | 17.37 | 6.70% | 6.51% | -1.96% | 175.59% | |
63 Neutral | S$12.73B | 17.29 | 6.96% | 5.49% | 2.35% | 365.31% | |
62 Neutral | S$6.91B | 34.95 | 2.25% | 1.31% | -10.52% | -39.75% |
* Real Estate Sector Average
SG:ME8U
Mapletree Industrial
2.03
-0.01
-0.68%
SG:A17U
CapitaLand Ascendas REIT
2.77
0.39
16.53%
SG:C09
City Developments
7.67
2.72
55.07%
SG:J69U
Frasers Centrepoint
2.29
0.32
16.01%
SG:AJBU
Keppel DC REIT
2.20
0.14
6.95%
SG:N2IU
Mapletree Commercial
1.45
0.32
28.55%
Mapletree Industrial Corporate Events
Mapletree Industrial Trust Issues New Units for Management Fee
Nov 7, 2025
Mapletree Industrial Trust Management Ltd. announced the issuance of 790,396 new units in Mapletree Industrial Trust to pay the manager’s base fee. This issuance is related to the management of 29 data centers in the United States and a data center in Osaka, Japan, reflecting the company’s strategic focus on expanding its data center portfolio. The issuance increases the total number of MIT units to 2,853,365,417, potentially impacting the trust’s market positioning and stakeholder value.
Mapletree Industrial Trust Extends Property Management Agreements
Oct 21, 2025
Mapletree Industrial Trust has announced the extension of its property management agreements for its properties in Singapore, North America, and Japan. The extensions, set for five years starting in October 2025, aim to ensure continuity and operational efficiency, benefiting unitholders by leveraging the extensive experience of its property managers.
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.