Mapletree Industrial Trust's 2Q FY24/25 Result Review

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Gross revenue, NPI, distribution to unitholders, and DPU have improved YoY mainly due to contributions from the Osaka Data Centre acquired in September 2023 and better performance across the portfolio. Distribution declared by joint venture has declined significantly YoY due to higher borrowing costs. All in all, the amount available for distribution and DPU have improved slightly YoY amid the similar distribution from divestment gain.

Rental Reversion

The weighted average rental reversion is at 10.7%. 

Acquisition

On 29 October, MIT completed the acquisition of a second property in Japan. 

Asset Enhancement Initiative

Year to date, solar panels have been installed across Kallang Basin 4, Kampong Ampat, Toa Payoh North 1, Kaki Bukit, Redhill 1 and Redhill 2 property clusters.

Related Parties Shareholding

• REIT Sponsor's Shareholding: Moderate
• REIT Manager's Shareholding: Moderate
• Directors of REIT Manager's Shareholding: Favorable

Lease Profile

• Occupancy: Moderate
• WALE: Less Moderate
• Highest Lease Expiry in 4 Years: Moderate
• Weighted Average Land Lease Expiry: Less Favorable

Debt Profile

• Gearing Ratio: Moderate
• Cost of Debt: Favorable
• Fixed Rate Debt %: Moderate
• Unsecured Debt %: Favorable
• WADM: Favorable
• Highest Debt Maturity in 4 Years: Moderate
• Interest Coverage Ratio: Favorable

Diversification Profile

• Top Geographical Contribution: Less Favorable
• Top Property Contribution: Favorable
• Top 5 Properties' Contribution: Favorable
• Top Tenant Contribution: Favorable
• Top 10 Tenants' Contribution: Favorable

Key Financial Metrics

• Property Yield: Less Favorable
• Management Fees over Operating Distributable Income: Moderate
• Operating Distributable Income on Capital: Favorable
• Operating Distributable Income Margin: Favorable
• Operating Distribution Proportion: Moderate

DPU Breakdown

• TTM Distribution Breakdown:
• 95.4% from Operation
• 1.6% from Management Fees Paid in Units
• 2.6% from Divestment Proceeds
• 0.4% being Retained

Trends (Up to 10 Years)

• Uptrend: DPU from Operations, NAV per Unit
• Flat: Committed Occupancy
• Slight Downtrend: Operating Distribution Proportion
• Downtrend: Adjusted Interest Coverage Ratio, Property Yield, Operating Distributable Income over Manager's Fees, Operating Distributable Income on Capital, Operating Distributable Income Margin

Price Range & Relative Valuation Metrics

• Dividend Yield - Average for 1y, 3y & 10y; Above +1SD for 5y
• P/NAV - Average for 1y, 3y, 5y & 10y

Author's Opinion

As compared to the previous quarter, gross revenue and NPI have seen improvement. Despite the improvement, the amount available for distribution to unitholders and DPU has declined slightly. Regarding debt, there is no refinancing requirement in this fiscal year.

For more information, check out:

SREITs Dashboard - Detailed information on individual Singapore REIT

SREITs Data - Overview and details of Singapore REIT

REIT Review - List of previous REIT review posts

To support my work, check out:

Patreon - Subscribe and get exclusive content

Investing Note - Support by following my Investing Note profile

Facebook Page - Support by liking my Facebook Page    

Facebook Group - REIT Investing Community - Join to share and discuss REITs

Telegram Channel - Singapore REITs Post - Join to receive posts for Singapore REITs

Buy Me a Coffee - Treat me a coffee for my efforts

*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my findings and should not be considered professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decisions.