While the REIT&rsquo s distribution per unit (DPU) of 3.36 cents for the 4QFY2024/2025 ended March 31 and DPU of 13.57 cents for the FY2024/2025 met analysts&rsquo estimates, its overall portfolio occupancy was a concern.

In the 4QFY2025, the REIT&rsquo s average overall portfolio occupancy fell to 91.6% from the previous quarter&rsquo s 92.1%, due to the lower average occupancy rate in its North American portfolio.

The research team at OCBC Investment Research is seeking more clarity on near-term vacancy risks with &ldquo concerns&rdquo over occupancy rates for its North American portfolio. During its results call, MINT indicated that 1.7% of its portfolio lease expiries are unlikely to renew their leases.

As such, the team has lowered its DPU estimate for FY2026 due to softer occupancy inputs and lower distributions from its joint ventures (JVs) given that the cost of its JV debt is slightly higher. Including a higher cost of equity assumption of 7% from 6.5% given the higher market volatility and increased macroeconomic uncertainties, the team has kept its &ldquo buy&rdquo call but with al owered fair value estimate of $2.46 from $2.71.

Maybank Securities analyst Krishna Guha has also lowered his DPU estimate for FY2026 and FY2027 due to potential non-renewals. Similarly, his target price has been lowered to $2.20 from $2.30 previously. That said, he has also retained his &ldquo buy&rdquo call due to MINT&rsquo s exposure to data centres and its estimated dividend yield of 6.3% for FY2026 and FY2027.

CGS International analysts Lock Mun Yee and Li Jialin have also kept their &ldquo add&rdquo call as they remain positive over MINT&rsquo s positive portfolio metrics, including its positive reversions, and FY2025 dividend yield of 6.5%. Like their peers, Lock and Li have lowered their DPU estimates for FY2026 and FY2027 by 6.98% and 8.02% respectively to factor in the frictional vacancy within MINT&rsquo s US portfolio. As such, their target price has been lowered to $2.56 from $2.82.

Citi Research analyst Brandon Lee has also lowered his DPU expectations for FY2026 and FY2027 by 1% and 5.3% respectively to reflect the lower occupancy in MINT&rsquo s North American portfolio, divestment of 2775 Northwoods Parkway and higher debt cost.

Like the rest, Lee has kept his &ldquo buy&rdquo call but with a lowered target price of $2.30 from $2.65.

Morningstar Equity Research analyst Xavier Lee has maintained his &ldquo four star&rdquo rating and fair value estimate of $2.30 as MINT&rsquo s 4QFY2024/2025 stood within his expectations.

Unlike his peers, Lee expects MINT&rsquo s occupancies to remain stable around the 91.6% mark, as he expects the REIT&rsquo s full-year average occupancy to come in at 92.2%.

He adds that he is positive over the power study conducted at MINT&rsquo s San Jose property, a move which could potentially increase its power to 3-7 megawatts (MW) from the existing 2-3 MW without much capital expenditure.

 

&ldquo [The study] could further rise to 20 MW in the next three to four years, but would require additional capital expenditure,&rdquo Lee notes. &ldquo Given this result, management is exploring a range of options, including potential sale or redevelopment.&rdquo

&ldquo Overall, we are positive about this development, which would unlock further value for the trust,&rdquo he adds.

At present, the analyst believes MINT&rsquo s units are undervalued considering its &ldquo attractive&rdquo FY2026 dividend yield of 6.8%.

Units in MINT closed 1 cent lower or 0.49% down at $2.02 on May 6.