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MAPLETREE Industrial Trust (MIT)
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Joelton
Supreme |
08-Jun-2023 12:49
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Maybank lowers target on MIT as tenant bankruptcy adds to headwinds
MAYBANK Securities has lowered its target price on Mapletree Industrial Trust : ME8U -0.45% (MIT) to S$2.30 from S$2.45, while maintaining its &ldquo hold&rdquo rating on the counter, after news of the trust&rsquo s third-largest tenant initiating bankruptcy proceedings.
In a report on Tuesday (Jun 6), analyst Krishna Guha said the latest development poses potential downside risks to MIT&rsquo s data centre assets, and adds to the research house&rsquo s concerns over a slowdown in local manufacturing.
Maybank&rsquo s lower target price on MIT accounts for reduced distribution per unit (DPU) estimates and medium-term growth rate assumptions &ldquo mainly due to growth headwinds emerging in the data centre segment&rdquo .
The research house has cut its forward DPU by 1 per cent to 3 per cent after factoring in the potential impact from the tenant bankruptcy, which more than offset estimated DPU accretion from MIT&rsquo s proposed Osaka acquisition.
Guha said that the news that MIT&rsquo s tenant had initiated bankruptcy proceedings, or the timing of the announcement, was &ldquo not surprising&rdquo given the recent trend of negative headlines reported by MIT&rsquo s peers and other tenants.
&ldquo However, it raises concerns on whether the data centre growth story is beginning to unravel,&rdquo he said.
Although Guha believes MIT should be able to mitigate the negative impact from its tenant&rsquo s bankruptcy thanks to its diversified tenant base and portfolio, he cautioned of wider industry headwinds, which may in turn affect overall demand for industrial space.
&ldquo While we recognise MIT&rsquo s relatively attractive valuation among the large-cap industrial Reits (real estate investment trusts), the sharp and prolonged slowdown in the local manufacturing sector is likely to weigh on demand for industrial space, especially the high-tech segment, in our view.&rdquo
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pasttime
Elite |
07-Jun-2023 14:38
Yells: "Buy good stock on sale and collect dividend long long time" |
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so the manager at the time of buying data center touted long wale. and collected good transaction profit. but now on hind sight show that it was a bad deal. can manager cough out the profit collected to help cover the mess they created. |
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Joelton
Supreme |
07-Jun-2023 12:44
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Mapletree Industrial Trust&rsquo s third-largest tenant enters US court-supervised Chapter 11 process
MAPLETREE Industrial Trust&rsquo s (MIT) third-largest tenant has initiated a pre-arranged court-supervised process under Chapter 11 of the United States Bankruptcy Code, the trust&rsquo s manager announced in a bourse filing on Tuesday (Jun 6).
The tenant, a global co-location provider, said it had received a commitment for US$200 million in debtor-in-possession financing and intended to pay vendors.
The group occupies spaces in seven data centres held under the Mapletree Rosewood Data Centre Trust, a 50:50 joint venture between Mapletree Investments and MIT.
As at Mar 31, 2023, it contributed about 3.2 per cent of MIT&rsquo s monthly gross rental income.
MIT&rsquo s manager said the tenant has met its rental obligations for April and partially fulfilled its rental obligations for May this year. The manager added that it would be pursuing the balance of the rental obligations for May.
MIT&rsquo s manager said that MIT has &ldquo a large and well-diversified tenant base &hellip that underpins the stability of its portfolio.&rdquo It added that it will continue to monitor the financial status of the tenant.
On Monday (Jun 5), the manager of Digital Core real estate investment trust : DCRU +4.88% (Reit) said that its second-largest tenant, also a global co-location provider, had filed for Chapter 11 bankruptcy protection.
It warned that the Reit&rsquo s distribution per unit (DPU) could be reduced by about US$0.02 if the annual revenue from the tenant was completely eliminated. Digital Core&rsquo s FY2022 DPU stood at US$0.0398.
Digital Core Reit&rsquo s manager did not name the tenant, but The Business Times reported that the troubled tenant is Cyxtera, a Nasdaq-listed data centre operator.
MIT&rsquo s manager did not name the tenant in question either. Both Digital Core and MIT&rsquo s tenants filed for Chapter 11 bankruptcy protection on the same day, Sunday (Jun 4), in New Jersey.
Digital Core Reit&rsquo s manager, like MIT&rsquo s manager, had also said that its customer had received a commitment for US$200 million in debtor-in-possession financing.
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aragosta
Master |
06-Jun-2023 09:56
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As I said, no $2.10 no add..... Meanwhile some updates on the financial status of a MIT tenant, a Global Colocation Provider https://links.sgx.com/FileOpen/20230606_Update%20on%20Financial%20Status%20of%20a%20MIT%20Tenant.ashx?App=Announcement& FileID=761647
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CheeryVGoh
Supreme |
05-Jun-2023 18:19
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Vacancies are a concern for some S-REITs, analysts indicateGoola Warden
16 April 2023· 2-min read
Vacancy risk a key focus in coming months, says JP Morgan as increasing number of tech companies face issues There are many aspects to valuing a REIT, in particular an externally managed REIT such as the S-REIT universe. The interest rate parts - interest expense, capital values, discount rates, discounted cash flows and yield spread - are a primary focus during the current interest rate cycle. Then there are rents which many investors would view as paramount to their investment. After all, without rents, no distributions per unit (DPU) are likely. It is the rental portion that now concerns the analysts at JP Morgan. &ldquo We see vacancy risk as the key focus into 1Q2023 on the back of growth concerns and real estate headwinds,&rdquo the JP Morgan analysts state in a report dated April 13. Separately, DBS Group Research points out that Cyxtera Technologies is a tenant of Keppel DC REIT (KDC REIT), Mapletree Industrial Trust (MIT) and Digital Core REIT (DC REIT). According to DBS, Cyxtera contributed just 2% to 3% of KDC REIT&rsquo s and MIT&rsquo s revenues, but &ldquo made up a sizeable 32% of DC REIT&rsquo s revenues and thus would have a significant impact on the latter&rsquo s financials&rdquo . In addition, KDC REIT is in litigation with DXC, one of its tenants. On March 21, 2022, KDC REIT announced it had commenced a suit in the High Court of Singapore over a dispute on rent payment to the tune of $14.8 million. According to JP Morgan, MIT is also impacted by non-renewals or partial renewals from AT& T and Atos. Together, AT& T, Atos and Cyxtera could have contributed 6% to 7% to MIT&rsquo s distributable income. JP Morgan estimates. Separately, Mapletree Pan Asia Commercial Trust (MPACT) may see vacancies from spaces occupied by Seiko and NTT, which contribute around 5% of its DI, JP Morgan says. Among the manageable exposures says JP Morgan, is the non-renewal by Commerzbank at Gallileo, which contributed 1.8% to CapitaLand Integrated Commercial Trust&rsquo s rental revenue in FY2022. As at Dec 31, 2022, CICT had revalued Gallileo downwards by 22% y-o-y to $370.2 million. CICT had acquired 94.9% of Gallileo (pictured) for the equivalent of approximately $540 million in 2018. On the other hand, JP Morgan points out that S-REITs with office and hospitality assets are expected to report improved rental reversions. Nonetheless, JP Morgan prefers to err on the side of caution. " We see downside to street DPUs post results on the back of higher borrowing cost guidance. Our FY2023 DPU estimates are on average 2% below street. We also see a changing narrative on equity raisings, supporting accretive acquisitions," the April 13 report says. Its top picks are laggards such as CDL Hospitality Trusts, CICT, CapitaLand Ascendas REIT, KDC REIT and Mapletree Logistics Trust. |
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CheeryVGoh
Supreme |
05-Jun-2023 18:12
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Cyxtera is a tenant of Keppel DC, MIT and DC Reit. Cyxtera filed for U.S. bankruptcy on Sunday. |
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Michael1688
Member |
29-May-2023 16:01
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I wonder when will it go back to 300 as no meaning of getting quarterly dividends. For those bought at 300 should have same felt as mine. What if you buy at current prices of 225, will it one day drops below 200. I lost confidence on MIT | ||||
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Joelton
Supreme |
29-May-2023 15:55
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Mapletree S-Reits see strong performance amid active acquisitions
Vivocity&rsquo s full year tenant sales improved 30.6 per cent yoy, exceeding S$1 billion, which set a new record.
AMONG the constituents of the Straits Times Index, three S-Reits are members of the Mapletree family &ndash Mapletree Pan Asia Commercial Trust : N2IU 0%, Mapletree Logistics Trust : M44U +0.61%, and Mapletree Industrial Trust : ME8U -0.88% &ndash and they make up a third of S-Reits&rsquo representation in the index.
Mapletree Pan Asia Commercial Trust (MPACT) invests primarily in commercial assets for office and retail purposes across five key Asian markets, with total assets under management (AUM) of S$16.6 billion.
Mapletree Logistics Trust (MLT) invests in logistics assets across nine countries worldwide, with total AUM of S$12.8 billion.
Mapletree Industrial Trust (MIT) owns industrial and data centre assets both in Singapore and North America, with total AUM of S$8.8 billion.
All three S-Reits have reported full-year results for FY22/23 ended Mar 31, 2023 and saw stronger gross revenue and net property income (NPI) performance for the year.
MPACT reported the strongest growth in gross revenue and NPI among the three, with full year FY22/23 gross revenue and NPI rising 65.4 per cent and 62.6 per cent year on year (yoy) respectively.
According to MPACT, the growth was mainly driven by contribution from properties acquired through the merger of Mapletree Commercial Trust and Mapletree North Asia Commercial Trust, as well as higher earnings from core assets, VivoCity and Mapletree Business City, which cushioned the increase in utility and finance costs.
This led to higher distribution per unit (DPU) of 9.61 Singapore cents for the year, up 6.1 per cent yoy (excluding the release of retained cash in FY21/22).
MPACT also reported stronger operational metrics, with portfolio committed occupancy at 95.4 per cent and positive rental reversion of 0.7 per cent. In particular, VivoCity&rsquo s full year tenant sales improved 30.6 per cent yoy, exceeding S$1 billion, which set a new record and surpassed pre-Covid levels.
MLT&rsquo s FY22/23 gross revenue and NPI grew 7.7 per cent and 7.2 per cent yoy to S$731 million and S$635 million respectively. As a result, amount distributable to unitholders grew 10.8 per cent yoy to S$432.9 million, while DPU rose 2.5 per cent to 9.011 cents on an enlarged unit base. In March this year, MLT announced the acquisition of eight modern logistics assets in Japan, Australia and South Korea for S$904.4 million as well as the potential acquisition of two modern logistics assets in China for S$209.6 million.
MIT reported a double-digit gross revenue growth for FY22/23, up 12.3 per cent yoy. This led to stronger FY22/23 NPI of S$518 million, an increase of 9.7 per cent yoy.
It was mainly driven by the contribution from the acquisition of 29 data centres in the US but partially offset by higher borrowing costs.
However, DPU for the year fell by 1.7 per cent to 13.57 cents due to an enlarged unit base.
MIT recently also completed a private placement, raising over S$200 million to partially fund its latest acquisition of a newly built data centre in Osaka, Japan, which came at a purchase consideration of 52.0 billion yen (approximately S$507.9 million).
The private placement was approximately 4.5 times covered at S$2.212 per new unit. This marks MIT&rsquo s first foray into the Japanese data centre market, further diversifying its portfolio.
Post-acquisition, Japan will account for about 5.5 per cent of MIT&rsquo s portfolio by AUM, with North America and Singapore representing the remaining 47.6 per cent and 46.9 per cent respectively. SGX
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pasttime
Elite |
29-May-2023 13:47
Yells: "Buy good stock on sale and collect dividend long long time" |
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will there be investigation into why the price was force down then do a placement at super low price against the interest of the rest of exisiting units holders then. now they start to let price recover and possible to make the difference. | ||||
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beng1102
Elite |
29-May-2023 09:27
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It looks strong! I think can hit 2.35 soon.
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Fataaa
Member |
26-May-2023 16:25
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Osaka looks happening next decade.. good decision to go into it... https://www.reuters.com/markets/asia/japan-approves-osaka-site-countrys-first-casino-2023-04-14/ |
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Tanahkow
Senior |
26-May-2023 16:20
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will be adjusted acordingly after XD on 1 June, may drop even further for short term in next 1 or 2 or 3 months until the next Q or H updates where the revenue of the acquisition will be included Depends on whether long term, or short term trading, apply different strategy for different people with different mindset
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beng1102
Elite |
26-May-2023 09:47
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opening @2.25 and looks bullish. I think this could be a good entry price.
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des_khor
Supreme |
26-May-2023 09:44
Yells: "Tell me who is God or Market Fortune Teller in this forum ??" |
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Quite strong ?. Expect to dip 2.20 | ||||
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Joelton
Supreme |
26-May-2023 09:42
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Mapletree Industrial Trust buys Osaka data centre for 52 billion yen, to raise S$200 million via new units
MAPLETREE Industrial Trust (MIT) is acquiring a new data centre in downtown Osaka, Japan, through the purchase of the trust beneficial interest for a consideration of 52 billion yen (S$507.9 million).
The asset sits on around 45,280 square feet (sq ft) of land, with gross floor area of about 143,500 sq ft and net lettable area of about 136,900 sq ft. While construction and the first phase of fitting-out works have been completed, the building is expected to be fully fitted by May 2025.
It is also fully leased to a data centre operator, with a weighted average lease to expiry of about 20 years, said MIT&rsquo s manager on Thursday.
The transaction structure, which was done through a wholly-owned unit of MIT and an unrelated third-party vendor, Suma Tokutei Mokuteki Kaisha, will result in MIT acquiring an effective interest of 98.47 per cent in the property.
The acquisition is also expected to be distribution per unit and net asset value per unit accretive to unitholders, at a rate of 2.1 per cent and 0.5 per cent respectively, said the manager.
The trust intends to finance the total acquisition outlay of about 51.8 billion yen through a combination of debt and equity. About S$195.7 million will be funded through a private placement, it announced in a separate statement on Thursday.
MIT said it intends to raise S$200 million via issuing about 92.6 million new units at an issue price of between S$2.160 and S$2.212 per unit to fund the Osaka transaction. The remaining S$4.3 million will be used for paying off fees and expenses incurred by the fundraising.
The issue price range represents a discount of between 2.6 per cent and 4.9 per cent to the volume-weighted average price (VWAP) of S$2.2706 per unit.
Against the adjusted VWAP of S$2.2458, the issue price range is roughly a 1.5 per cent and 3.8 per cent discount.
The new units are expected to be issued on Jun 6.
Tham Kuo Wei, chief executive officer of the manager, said that the proposed acquisition offered an opportunity for the trust to diversify its data presence into Japan &ndash which it believes is one of the most developed data centre markets in Asia-Pacific.
&ldquo It will enlarge our presence in the resilient data centre sector, which continues to offer attractive growth prospects,&rdquo he said.
&ldquo The addition of a high quality data centre with its long-term lease to an established data centre operator will provide a stable income stream and strengthen MIT&rsquo s tenant base.&rdquo
Post-acquisition, Japan will account for about 5.5 per cent of MIT&rsquo s portfolio by assets under management. North America and Singapore will represent the remaining 47.6 per cent and 46.9 per cent, respectively.
The property has a 70-year land lease which commenced on Oct 1, 2020. Acquisition of the asset is expected to be completed by the third quarter of 2023.
Additionally, MIT&rsquo s manager said it would also be declaring an advanced distribution for the period from Apr 1 to the date immediately prior to the date which the new units are issued. This is estimated to be between 2.38 Singapore cents and 2.58 cents.
A further announcement on the actual quantum of distribution per unit will be made by the manager in due course.
&ldquo The advanced distribution is intended to ensure that the distribution accrued by MIT up to the day immediately preceding the date of issue of the new units pursuant to the private placement is only distributed in respect of the existing units, and is being proposed as a means to ensure fairness to holders of the existing units.&rdquo
The new units will, upon issue, rank pari passu in all respects with the existing units, other than in respect of the advanced distribution.
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pasttime
Elite |
25-May-2023 16:32
Yells: "Buy good stock on sale and collect dividend long long time" |
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the talk about dpu acredition has no guarantee. look at the merger between mapletree industrial and mapletree north asia. said to be i remember as 10cents+ but then now? less then 10 cents. also it was at time when the retail space was facing problems. this talk about data center having a stable and long rental agreement. but if any of the datacenter customer face financial problem it will also be difficult to find new customer to take the space. then it will be long vacant space. just like us office space now. alsom since rental are lock in the growth in rental is also limited even if there is increased in demand. so no upside only got downside. what so good about datacenter? rather they go try to rent out the developed industrial space in kallang for good rates. |
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Tanahkow
Senior |
25-May-2023 16:24
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one man meat is another man poison, Just my own opinion, Cash is king when comes to purchasing of assets - stocks or properties same, cheap price come upon market downturn / crisis The whole business of REITs is to buy property, collect rent, pay out dividends. If no acquisition, how to grow revenue ? 1. when times are bad, cannot recycle properties for new funds 2. Private placement dont need to pay bank interest, and most effective & efficient compare to rights issues 3. Private placement to Insitutions seldom trade, institutions mostly long term holdings 4. Existing unit holders dont have to cough out additional cash to support I will be most happy to buy from open market when prices drop below wht the private placement prices....example, Mapletree Logistics and Capitaland Ascendas recent private placement, prices dropped short-term, I think |
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aragosta
Master |
25-May-2023 15:50
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The motive is very simple, as had already been said....." acquisitions can benefit the mangers as they stand to earn acquisition fees, plus higher recurring management fees due to growing assets under management." No below $2.10, no add.... vested |
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pasttime
Elite |
25-May-2023 15:46
Yells: "Buy good stock on sale and collect dividend long long time" |
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at a time when people are more concern about debt level. this mit go buy more and take on more debt. wonder what is the motive. any unfair treatment to retail unit holders with such low price placement without offering to existing unit holders to buy. dilution with potential problem as debt is increasing. and more units to dilute any growth in distributions. |
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Tanahkow
Senior |
25-May-2023 13:04
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The quantum of distribution per unit in MIT (&ldquo Unit&rdquo ) under the Advanced Distribution is currently estimated to be between 2.38 Singapore cents and 2.58 Singapore cents1 . A further announcement on the actual quantum of distribution per Unit (which may differ from the estimate above) under the Advanced Distribution will be made by the Manager in due course. The next distribution following the Advanced Distribution will comprise MIT&rsquo s distributable income for the period from the day the New Units are issued pursuant to the Private Placement, currently expected to be on Tuesday, 6 June 2023, to 30 June 2023. Quarterly distributions will resume thereafter. Unitholders whose securities accounts with The Central Depository (Pte) Limited are credited with Units as at 5.00 p.m. on the Advanced Distribution Record Date will be entitled to the Advanced Distribution that will be paid on or around Thursday, 6 July 2023. XD = 1 June 2023 |
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