Mapletree Industrial (ME8U) AI Stock Analysis

• Market Cap: S$6.02B
• Dividend Yield: 6.51%
• Average Volume (3M): 6.00M
• Price to Earnings (P/E): 18.3
• Beta (1Y): 0.53
• Revenue Growth: -1.96%
• EPS Growth: 175.59%
• Country: SG
• Employees: 186
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Industrial
• EPS (TTM): 0.03
• Shares Outstanding: 2,853,365,500
• 10 Day Avg. Volume: 3,568,700
• 30 Day Avg. Volume: 6,004,873
• PEG Ratio: -0.91
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 9.49
• P/FCF Ratio: 15.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: S$1.90
• Price Target Upside: -9.84% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: S$2.50 ▲(18.48% Upside)

The score is driven primarily by solid underlying profitability and manageable leverage, tempered by a major revenue contraction and softer cash conversion. Technicals are moderately supportive with price above key averages and positive MACD. Valuation is helped by a strong dividend yield, while the latest earnings call was balanced—better DPU and hedging offset by weaker net property income and interest-rate risks.

Positive Factors

High profitability margins

Sustained high gross and net margins provide a durable earnings buffer for a REIT, improving ability to fund distributions, service debt and reinvest in properties. Strong margins help absorb cyclical rental pressures and support long-term cash generation even amid revenue volatility.

Robust interest-rate hedging

A near-93% hedge ratio materially reduces exposure to rising short-term rates, stabilizing borrowing costs and cash interest payments. This structural protection supports predictable financing costs, aiding distribution planning and strategic acquisitions over the coming years.

Stable occupancy and strong rent revisions

High occupancy around 91% plus sizable positive rental revisions in Singapore indicate pricing power and resilient tenant demand for industrial space. These structural trends support recurring rental income and long-term cash flow stability for the trust.

Negative Factors

Severe revenue contraction

A roughly 70% TTM revenue drop is a structural concern, shrinking scale and recurring income. Reduced revenue base undermines earnings durability, weakens diversification benefits, and increases reliance on asset recycling or non-operating gains to sustain distributions and capex.

Weaker cash conversion and FCF momentum

Below-par cash conversion (OCF < net income) and falling free-cash-flow growth indicate earnings quality and liquidity strain. Over time this pressures the REIT's ability to self-fund maintenance capex and distributions, increasing reliance on asset sales or new debt to bridge gaps.

North America portfolio stress and divestment risk

Lease nonrenewals and planned $500–600m North America disposals reduce portfolio income and create execution risk. Asset recycling may depress near-term NPI and scale, forcing reinvestment timing risks and potential capital redeployment at less favorable yields.

Mapletree Industrial Business Overview & Revenue Model

Company Description

Mapletree 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 Money

Mapletree 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 Financial Statement Overview

Summary

Strong profitability (TTM net margin ~49.9%, gross margin ~64.5%) and manageable leverage for a REIT (debt-to-equity ~0.63). The main drag is the severe TTM revenue contraction (~-70%) and weaker cash conversion (operating cash flow ~0.78x net income) alongside sharply negative free cash flow growth.

Income Statement

Profitability is strong, with very high TTM (Trailing-Twelve-Months) net margin (~49.9%) and solid gross margin (~64.5%). However, the latest period shows a sharp revenue decline (TTM revenue growth about -70%), which is a major red flag for near-term earnings durability despite healthy margins.

Balance Sheet

Leverage appears moderate for a REIT, with debt-to-equity around ~0.63 in TTM (Trailing-Twelve-Months) (and ~0.54–0.58 historically), supported by a sizable equity base. Return on equity is positive but not high (TTM ~6.6%), suggesting decent but not exceptional capital efficiency, and the business remains meaningfully debt-reliant as expected in the sector.

Cash Flow

Cash generation is generally solid, with free cash flow roughly matching net income in TTM (Trailing-Twelve-Months) (~1.0x). The weaker point is reduced cash flow momentum (TTM free cash flow growth is sharply negative) and a lower ability to cover accounting earnings with operating cash flow in TTM (operating cash flow is below net income at ~0.78x), indicating some near-term cash conversion softness.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	673.78M	681.06M	611.19M	697.33M	553.70M	447.20M
Gross Profit	437.57M	434.22M	443.25M	456.61M	414.69M	350.25M
EBITDA	454.46M	480.25M	406.67M	306.26M	408.64M	309.20M
Net Income	335.25M	345.16M	291.11M	120.51M	439.22M	164.50M
Balance Sheet
Total Assets	8.12B	8.80B	8.55B	8.66B	8.48B	6.39B
Cash, Cash Equivalents and Short-Term Investments	101.04M	107.63M	146.61M	119.90M	149.64M	60.46M
Total Debt	3.09B	3.27B	2.88B	3.08B	2.94B	2.27B
Total Liabilities	3.30B	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	413.32M	488.26M	448.06M	432.78M	497.04M	236.71M
Operating Cash Flow	413.51M	488.26M	448.06M	432.78M	497.08M	236.80M
Investing Cash Flow	463.46M	-207.24M	-100.61M	-353.13M	-1.75B	-527.20M
Financing Cash Flow	-899.94M	-293.47M	-350.46M	-106.34M	1.35B	297.67M

Mapletree Industrial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 2.11 is above the 20-day moving average (MA) of 2.10, above the 50-day MA of 2.06, and above the 200-day MA of 2.01, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 63.85 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:ME8U.

Mapletree Industrial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AJBU	76 Outperform	S$5.44B	13.68	10.81%	4.55%	23.81%	89.10%
J69U	72 Outperform	$4.60B	21.65	4.49%	5.29%	10.82%	-5.02%
ME8U	71 Outperform	S$6.02B	18.33	6.70%	6.51%	-1.96%	175.59%
N2IU	66 Neutral	S$7.76B	11.23	7.32%	5.50%	-6.34%	49.60%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
A17U	63 Neutral	S$13.14B	17.86	6.96%	5.43%	2.35%	365.31%
C09	62 Neutral	S$8.47B	42.84	2.25%	1.23%	-10.52%	-39.75%

Mapletree Industrial Corporate Events

Mapletree Industrial Trust Secures AA- Credit Ratings with Stable Outlook from Japanese Agencies

Mapletree Industrial Trust has been assigned “AA-” long-term issuer credit ratings in both foreign and local currency, with a Stable outlook, by Japan Credit Rating Agency and Rating and Investment Information. The strong ratings underscore the trust’s creditworthiness and financial resilience, which may support its access to funding and reinforce investor confidence in its industrial and business space portfolio amid ongoing market risks highlighted in the announcement’s investment disclaimers.

The most recent analyst rating on (SG:ME8U) stock is a Hold with a S$2.00 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 Management Fee

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.

The most recent analyst rating on (SG:ME8U) stock is a Buy 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.