TICKER ME8U.SI
ISIN SG2C32962814
Market cap. SGD
5,963,533,722
Shs outstanding 2,853,365,417
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.
Strategy: Beat the STI
Return at exit: Live
Value Play with Strong Balance Sheet
• Mapletree Industrial Trust presents an attractive valuation opportunity with a P/B ratio of just 1.18 and significant upside potential (current price: 2.11 SGD vs. InvestingPro fair value: 2.84 SGD).
• The REIT demonstrates solid market performance with positive returns across all timeframes (1-year: 5.44%, 6-month: 7.81%) while offering a substantial 6.15% dividend yield.
• Recent strategic divestments at premium prices (2.6% above valuation) have strengthened the balance sheet, reducing leverage from 40.1% to a healthier 37.3% and lowering borrowing costs to 3.0%.
• The trust’s portfolio is well-positioned in growth sectors with data centers now comprising 58.3% of assets, while Singapore properties enjoy positive rental reversions of 7.1%.