Mapletree Industrial Trust Data Centres

Mapletree Industrial Trust 4QFY21/22 Financial Results

Mapletree Industrial Trust Hi-Tech Buildings

On 26th April 2022, Mapletree Industrial Trust has announced their 4QFY21/22 Financial Results. In 2020, Mapletree Industrial Trust added data centres into their portfolio. As such if you do not like a pure data centre REIT like Keppel DC REIT, you can consider Mapletree Industrial Trust.

Almost 1 year after the addition of data centres into Mapletree Industrial Trust’s portfolio, how did the REIT fare in terms of financial performance?

Let us find out more below.

Mapletree Industrial Trust 4QFY21/22 Financial Results

4QFY21/22 Distributable Income increased 27.7% to S$90 million.

DPU increased 5.8% to 3.49 cents.

4QFY21/22
(S$’000)
4QFY20/21
(S$’000)
Change
Gross Revenue 164,092 121,062 35.5%
Net Property Income 124,207 91,808 35.3%
Property expenses
(39,885) (29,254) 36.3%
Amount Distributable To Unitholders 90,328 70,748 27.7%
Distribution Per Unit (“DPU”) (cents) 3.49 3.30 5.8%

Mapletree Industrial Trust Full Year FY21/22 Financial Results

Gross revenue and net property income for FY21/22 increased 36.4% and 34.5% year-on-year to S$610.1 million and S$472.0 million respectively.

The increases were mainly driven by contributions from the acquisition of 29 data centres in the United States of America as well as the 14 data centres in the United States previously held under Mapletree Redwood Data Centre Trust and 8011 Villa Park Drive, Richmond, Virginia.

DPU for FY21/22 increased by 10.0% year-on-year to 13.80 cents.

FY21/22
(S$’000)
FY20/21
(S$’000)
Change
Gross Revenue 610,063 447,203 36.4%
Net Property Income 471,981 350,991 34.5%
Property expenses
(138,082) (96,212) 43.5%
Amount Distributable To Unitholders 350,906 295,264 18.8%
Distribution Per Unit (“DPU”) (cents) 13.80 12.55 10.0%

Occupancy

Overall portfolio occupancy stood at 94.0%. Performance could have been better.

Lease Expiry

In terms of lease expiry, they are pretty well-staggered with Weighted Average Lease Expiry (WALE) at 4.1 years.

One of the thing that concern me is that Hewlett Packard (“HP”) makes up 6.1% of its gross rental income. This remind me of how Hewlett Packard impacted Frasers Commercial Trust when it vacates Alexandra Technopark.

Investors should keep in check of the lease expiry and renewal of its top tenants.

Debt

Aggregate leverage stood at 38.4% with credit rating of ‘BBB+’ with Stable Outlook by Fitch Ratings.

Weight Average Tenor of Debt stood at 3.8 years.

70.5% of borrowings are at fixed rate to mitigate again foreign exchange fluctuations.

Current Dividend Yield

Based on the current share price of S$2.61 and FY21/22 DPU payout of 13.80 cents, this translate to a current dividend yield of 5.29%.

This is more attractive than Mapletree Logistics Trust!

Summary of Mapletree Industrial Trust 4QFY21/22 Financial Results

Mapletree Industrial Trust has kept its promise of increased DPU post acquisition of the data centres.

With the depressed share price and improved DPU, this makes the current dividend yield attractive! Similar to the fate of Keppel DC REIT, I believe investors are worried about the increase electricity cost which will increase the operating costs of its Data Centres.

Mapletree Industrial Trust has ventured into its first foray into renewable energy with the installation of solar panels at the rooftops of Serangoon North Cluster and K&S Corporate Headquarters. I believe they will soon extend this to their other assets which can mitigate slightly against increasing electricity costs.

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