Mapletree Industrial (ME8U) AI Stock Analysis

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SG:ME8U Dividends

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Mapletree Industrial

(OTC:ME8U)

62Neutral

Mapletree Industrial's overall score reflects a strong financial performance and cash flow generation capability, which are its primary strengths. However, its technical indicators suggest a neutral to slightly bearish sentiment, and the high P/E ratio indicates potential overvaluation. The attractive dividend yield offers some support, but caution is advised due to the increasing debt levels and revenue fluctuations.

Positive Factors

Operational Growth

Well-timed acquisitions, a diversified and expanding platform coupled with active lease-up of newly completed developments are set to drive growth.

Rental Performance

MINT achieved positive rental reversions of 9.8%.

Strategic Investments

Mapletree Industrial Trust has made a strategic pivot to invest in datacenters which now contribute close to 50% of its assets.

Negative Factors

Interest Rates Impact

An increase in refinancing rates will negatively impact distributions, but MINT has minimized the impact by fixing approximately 73% of its interest cost.

Lease Expiry Risk

The leases for three data centres at 2000 Kubach Road in Philadelphia, 400 Holger Way in San Jose and 250 Williams Street in Atlanta are unlikely to be renewed.

Occupancy Challenges

Overall portfolio occupancy dipped to 92.1% as take-up in the Singapore portfolio slipped.

Mapletree Industrial (ME8U) vs. S&P 500 (SPY)

Market Cap

S$5.76B

Dividend Yield6.33%

Average Volume (3M)8.99M

Price to Earnings (P/E)48.1

Beta (1Y)0.61

Revenue Growth1.34%

EPS Growth195.50%

CountrySG

Employees186

SectorReal Estate

Sector Strength76

IndustryREIT - Industrial

Share Statistics

EPS (TTM)0.12

Shares Outstanding2,850,935,300

10 Day Avg. Volume7,154,022

30 Day Avg. Volume8,988,234

Financial Highlights & Ratios

PEG Ratio0.25

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

S$2.40

Price Target Upside19.03% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering3

Mapletree Industrial Business Overview & Revenue Model

Company DescriptionMapletree Industrial Trust (ME8U) is a Singapore-based real estate investment trust (REIT) that focuses on the acquisition, development, and management of a diversified portfolio of industrial properties. These properties include business park buildings, factories, and data centers, primarily located in Singapore and North America. The trust aims to provide unit holders with stable and sustainable returns through proactive asset management and strategic property investments.

How the Company Makes MoneyMapletree Industrial Trust generates revenue primarily through leasing its industrial properties to a wide range of tenants across various industries. Rental income is the key revenue stream, as the trust enters into long-term lease agreements with tenants, providing a stable and predictable cash flow. Additionally, Mapletree Industrial Trust may also benefit from appreciation in property values, which can enhance asset value and future rental income potential. Strategic acquisitions and developments, such as expanding into data centers, further contribute to its earnings by tapping into high-demand sectors. The trust's revenue is also supported by its active asset management strategy, which focuses on enhancing property value and tenant retention through property upgrades and efficient management practices.

Mapletree Industrial Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
703.86M	611.19M	553.70M	447.20M	379.13M
	Gross Profit
463.14M	443.25M	414.69M	350.25M	290.70M
	EBIT
454.65M	406.61M	408.58M	309.13M	281.97M
	EBITDA
306.26M	406.67M	408.64M	309.20M	282.03M
	Net Income Common Stockholders
120.51M	291.11M	439.22M	164.50M	367.14M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
119.90M	146.61M	149.64M	60.46M	53.44M
	Total Assets
8.66B	8.55B	8.48B	6.39B	5.19B
	Total Debt
3.08B	2.88B	2.94B	2.27B	1.46B
	Net Debt
2.96B	2.73B	2.79B	2.21B	1.40B
	Total Liabilities
3.38B	3.17B	3.20B	2.50B	1.63B
	Stockholders Equity
5.29B	5.38B	5.28B	3.90B	3.56B
Cash Flow		Free Cash Flow
432.78M	448.06M	497.04M	236.71M	286.85M
	Operating Cash Flow
432.78M	448.06M	497.08M	236.80M	286.89M
	Investing Cash Flow
-353.13M	-100.61M	-1.75B	-527.20M	-429.43M
	Financing Cash Flow
-106.34M	-350.46M	1.35B	297.67M	155.95M

Mapletree Industrial Technical Analysis

Technical Analysis Sentiment

Negative

Last Price2.02

Price Trends

50DMA

2.03

Negative

100DMA

2.09

Negative

200DMA

2.20

Negative

Market Momentum

MACD

>-0.01

Negative

RSI

49.04

Neutral

STOCH

48.15

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:ME8U, the sentiment is Negative. The current price of 2.02 is above the 20-day moving average (MA) of 2.00, below the 50-day MA of 2.03, and below the 200-day MA of 2.20, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.04 is Neutral, neither overbought nor oversold. The STOCH value of 48.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:ME8U.

Mapletree Industrial Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
C38U	79 Outperform	$15.73B	15.81	6.32%	4.77%	1.54%	4.48%
BUOU	70 Outperform	S$3.39B	22.90	3.36%	6.78%	10.57%	―
K71U	67 Neutral	$3.34B	33.20	2.02%	6.32%	4.19%	-42.41%
ME8U	62 Neutral	S$5.76B	48.10	6.85%	6.33%	1.34%	195.50%
M44U	61 Neutral	$5.67B	30.68	2.74%	7.11%	-0.97%	-40.20%
Sector *	60 Neutral	$2.79B	11.37	0.20%	8519.74%	6.07%	-14.95%

* Real Estate Sector Average

Performance Comparison

SG:ME8U

Mapletree Industrial

2.02

-0.08

-3.95%

SG:C38U

CapitaLand Mall

2.15

0.32

17.74%

SG:M44U

Mapletree Logistics

1.12

-0.16

-12.64%

SG:BUOU

Frasers Logistics & Commercial Trust

0.90

-0.04

-4.56%

SG:K71U

Keppel REIT

0.86

0.05

5.78%

Mapletree Industrial Earnings Call Summary

Earnings Call Date:Apr 30, 2025

(Q2-2025)

% Change Since: 0.00%|

Next Earnings Date:Jul 29, 2025

Earnings Call Sentiment Neutral

The earnings call reflected a mixed sentiment, with several positive developments such as increased net property income, improved occupancy rates, and successful rental revisions. However, these were offset by challenges like the lower rental rate for the AT&T lease extension, a decrease in NAV, difficulties in filling Kallang Way, and higher operational costs.

Q2-2025 Updates

Positive Updates

Increased Net Property Income

Net property income increased by 4.6% year-on-year to $134.5 million, largely due to contributions from the Osaka Data Centre and new leases.

Occupancy Rate Improvement

Average portfolio occupancy increased from 91.9% to 92.2%, driven by the commencement of the Vanderbilt lease.

Successful Rental Revisions

Achieved a rental revision rate of 10.7% across all property segments, with some leases seeing increases as high as 26.1%.

Distribution Reinvestment Plan Success

Successfully retained $16.6 million through the distribution reinvestment plan, aiding in reducing leverage.

Completion of Tokyo Acquisition

Completed the acquisition of a new property in Tokyo, which is expected to provide significant future IT load capacity.

Negative Updates

AT&T Lease Extension at Lower Rent

AT&T lease extended for 17 months at a 20% lower rental rate compared to the first extension due to market conditions.

Decline in Net Asset Value

NAV per unit decreased by $0.04 to $0.0172 due to a decline in the valuation of financial derivatives and a weaker U.S. dollar.

Challenges in Filling Kallang Way

Occupancy at Kallang Way increased only by 1 percentage point this quarter to 54.5%, with significant competition in the market.

Higher Borrowing and Maintenance Costs

Incurred higher property taxes, marketing costs, and higher borrowing costs related to the Osaka Data Centre.

Potential Downtime for Expiring Leases

Faced potential downtime for the expiring leases in Phoenix and Vanguard, affecting future revenue.

Company Guidance

During the Q2 2025 earnings call for ME8U.SI, several key financial metrics and operational updates were discussed. The company reported a net property income increase of 4.6% year-on-year, reaching $134.5 million, primarily driven by contributions from the Osaka Data Centre. The distribution per unit (DPU) was announced at $0.0337, marking a 1.5% year-on-year increase. The overall portfolio occupancy improved from 91.9% to 92.2%, with significant contributions from the North American portfolio, particularly the Vanderbilt lease. However, the company faced challenges such as higher borrowing costs and property taxes. The aggregate leverage ratio stood at 39.1%, expected to rise to about 40% post-completion of the Tokyo acquisition. Additionally, the company extended its lease with AT&T for 17 months, though at a rental rate close to the initial lease, reflecting a 20% decrease compared to the first extension. The management also highlighted a positive rental revision of 10.7% across all property segments, driven largely by leases signed during the COVID period.

Mapletree Industrial Corporate Events

Mapletree Industrial Trust Secures US$100 Million Sustainability-Linked Facility

Mar 28, 2025

Mapletree Industrial Trust has secured a new US$100 million sustainability-linked facility, which includes conditions that could impact its debt facilities if breached. The potential breach could affect S$3,882.4 million in debt facilities, highlighting the importance of maintaining management continuity and alignment with its sponsor, Mapletree Investments.

Mapletree Industrial Trust Secures New Sustainability-Linked Facility

Mar 14, 2025

Mapletree Industrial Trust Management Ltd. has announced that DBS Trustee Limited, as trustee of Mapletree Industrial Trust, has entered into a new S$100 million sustainability-linked facility. This agreement includes conditions that, if breached, could affect S$3,764.3 million of the Trust’s debt facilities, potentially impacting its financial stability.

Mapletree Industrial Trust Issues New Units for Manager’s Fee

Feb 4, 2025

Mapletree Industrial Trust has issued 758,874 new units at S$2.2003 per unit to pay the manager’s base fee for the quarter ending December 31, 2024, pertaining to properties in the USA and Japan. This strategic issuance could enhance the company’s operational liquidity and reinforce its presence in the data center sector, potentially impacting stakeholder value positively.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.