Mapletree Industrial Trust
SGX-ME8U
Company Overview
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.
Name
Mapletree Industrial Trust
CEO
Lily Ler
Website
www.mapletreeindustrialtrust.com
Sector
Industrial REITs
Year Founded
2008
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Bulls Say
Mapletree Industrial Trust has a strong sponsor with a pipeline of data center assets for acquisition.
The trust’s management has a solid track record delivering distributions per-unit growth through leasing, asset-enhancement initiatives, and capital recycling.
Ongoing digitalization, cloud deployment, artificial intelligence, Internet of Things, and other technological advancements are expected to drive strong demand for data centers globally.
Bears Say
Landlords of industrial and business park properties have low pricing power, given the limited barriers to entry in constructing such properties.
Upcoming increases in interest rates will raise financing costs and the cost of capital, making it harder to identify yield-accretive acquisitions and grow distributions per unit.
Generally, Mapletree Industrial Trust’s Singapore properties have short leasehold tenures (below 40 years on average), which caps any potential capital appreciation of these properties.