DBS Group Research maintains &lsquo buy&rsquo call with target price of S$2.60

 

[SINGAPORE] Mapletree Industrial Trust (MIT) will adopt a more defensive leasing strategy and continue to rebalance its portfolio through divestments amid the current macroeconomic uncertainties, said the manager of the real estate investment trust (Reit) on Friday (May 2).

 

&ldquo One word to describe (the global economic outlook) is &lsquo uncertain&rsquo ,&rdquo said Ler Lily, chief executive officer of MIT&rsquo s manager.

 

She noted that many economies, including Singapore, are adjusting their growth outlooks. The risk of higher operating costs as well as elevated foreign costs will continue to exert pressure, she added.

 

&ldquo This is something we need to ride through and deal with,&rdquo Ler said.

 

In the face of the trade tariffs and political tensions, she said that the Reit is going to be more defensive in terms of its leasing strategy. She also noted the need to be more nimble and flexible.

 

Operationally, MIT will focus on improving occupancy for both Singapore and US portfolios, which can hopefully enhance cash flow.

 

The Reit&rsquo s efforts to rebalance its portfolios through divestments will continue, she added. This will strengthen its financial flexibility and provide more headroom for it to make meaningful acquisitions to ensure sustainable growth.

 

&ldquo I would say we do have our challenges ahead of us, but our portfolio is diversified, and we do have (a) relatively strong balance sheet, so we do hope that this can feed us through this uncertain time,&rdquo said Ler.

 

For the full year ended March, MIT&rsquo s distribution per unit (DPU) for FY2025 was up 1 per cent at S$0.1357, from S$0.1343 the previous year.

 

The manager attributed the DPU growth to new contributions from the Reit&rsquo s Osaka data centre and its newly acquired mixed-use facility in Tokyo, which was completed last September.

 

Revenue rose by 2.1 per cent to S$711.8 million, and net property income (NPI) went up by 2 per cent to S$531.5 million.

 

Besides contributions from the facilities in Osaka and Tokyo, increases in NPI were also attributed to new leases and renewals across various sectors in Singapore property clusters.

 

However, this was partially offset by higher property maintenance and marketing costs, and non-renewal of leases in its North American portfolio.

 

The divestment of the Tanglin Halt cluster also incurred a loss in income, which offset the NPI growth.

 

Borrowing costs slipped 1.4 per cent to S$105.1 million for the financial year, from S$106.6 million the year before. This was due to repayment of loans with proceeds from the Tanglin Halt divestment, as well as lower interest on unhedged floating rate loans.

 

For its operational front, the manager reported positive rental reversion across all property segments in Singapore, with a weighted average rental reversion rate of about 8.1 per cent in the final quarter of FY2025.

 

However, MIT has been one of the worst performers on the Straits Times Index so far this year.

 

Year to date, it has generated total returns of negative 7.6 per cent, compared with the Straits Times Index, which has returned a total of 3.3 per cent.

 

This share price weakness, however, is &ldquo unjustified&rdquo , said DBS Group Research analysts Derek Tan and Dale Lai in a Friday report.

 

The research house is maintaining its &ldquo buy&rdquo call on the Reit with a target price of S$2.60. MIT&rsquo s DPU of S$0.1357 is also in line with their estimates.

 

The way the analysts see it, MIT has actively managed the portfolio, and has successfully renewed or back-filled about 70 per cent of lease expiries over the past two years. This, they said, also demonstrates the continued relevance of MIT&rsquo s assets to enterprise needs.

 

Furthermore, they are positive that the new contributions from Japan, select US assets, and leasing momentum at Hi-Tech Park @ Kallang could provide upside surprises to their estimates.

 

These could help offset the expected churn in occupancy rates in the US, which could happen due to non-renewal of selected leases in the upcoming quarters.

 

Potential divestments to optimise and rebalance the portfolio could also help to manage overall risk, and redeploy the proceeds to other uses.

 

Recently, the divestment of a data centre in Georgia, US, for US$11.8 million was announced. When the sale is completed in the second quarter of 2025, the Reit can redeploy capital into other growth opportunities.

 

While MIT&rsquo s share price has declined 9 per cent year to date, DBS still sees investors gravitating towards the Reit &ndash especially with the uncertain economic conditions.

 

&ldquo Its diversified portfolio has demonstrated resilience through past downturns,&rdquo the analysts said.

Apr 24, 2025, 10:34:00 PM IST

I am Gujarat

President Donald Trump has rolled out a series of bold education reforms through a set of executive orders signed on April 23, 2025. These mandates target everything from the role of artificial intelligence in classrooms to how colleges handle foreign donations and accreditation. If you' re a parent, teacher, or student in the U.S., here&rsquo s exactly what you need to know about these changes&mdash written in simple terms, with clear facts, and in a conversational, news-style format.
 

What&rsquo s changing with AI in high school education?

Trump' s executive order puts a strong spotlight on artificial intelligence, signaling a major shift in how students will prepare for future careers. The Education and Labor Departments are now directed to create certification programs and curriculum paths focused on AI for high schoolers. Trump emphasized that the goal is to ensure American students become proficient in the tech that&rsquo s shaping the future.

&ldquo This is a big deal, because AI seems to be where it' s at,&rdquo Trump said during the Oval Office signing, as reported by  USA TODAY.

The order also calls for:

 

• The National Science Foundation to increase research on AI in education
   
• Teacher training grants to prioritize AI education
   
• New AI-related apprenticeship programs through the Labor Department
   

Why is Trump targeting &lsquo woke&rsquo standards in college accreditation?

Trump&rsquo s administration is now challenging how colleges and universities are accredited. Specifically, the new policy accuses accrediting bodies of pushing &ldquo discriminatory diversity, equity, and inclusion (DEI)-based standards&rdquo that the administration says violate federal law.

The White House says these accreditation agencies could face suspension or lose recognition if they:
 

• Enforce ideological standards
   
• Fail to uphold federal civil rights laws
   
• Don&rsquo t prioritize student outcomes and academic freedom
   

According to the order, this is about returning to &ldquo accountability&rdquo and ensuring education is based on merit and freedom of thought.
 

How is school discipline guidance being reshaped?

One of Trump&rsquo s executive actions reverses the Obama-era guidance on racial bias in school discipline. That earlier guidance, introduced in 2014, aimed to prevent Black students and students with disabilities from being disproportionately punished for minor infractions.

Trump&rsquo s administration believes that guidance led to overly lenient discipline policies, contributing to safety concerns. The new order states its intent is to remove racial bias from schools while restoring local control over discipline practices.

This move is already drawing strong opinions from educators and parents nationwide, as schools assess how the rollback could affect discipline policies.
 

What is disparate-impact liability and why is Trump changing it?

Another significant change comes in the form of ending the use of &ldquo disparate-impact liability&rdquo &mdash a legal theory that says policies may be discriminatory if they result in unequal outcomes, even if those policies are neutral on paper.

Trump&rsquo s order argues that this concept forces institutions to discriminate just to avoid unequal outcomes. He stated:
 

&ldquo Disparate-impact liability undermines civil-rights laws by mandating discrimination&hellip This order restores the true promise of the Civil Rights Movement&mdash a system that does not differentiate between Americans based on race.&rdquo

By revoking this theory, the administration wants schools and institutions to focus on individual merit, not group-based outcomes.
 

What&rsquo s happening with apprenticeships and skilled workforce development?

A major focus of the education overhaul is job training. Trump&rsquo s fifth executive order sets a 90-day deadline for the Departments of Labor, Commerce, and Education to present a roadmap to meet the demand for skilled American workers.

Goals include:
 

• Reviving industrial skills for reindustrialization
   
• Identifying gaps in U.S. employer needs
   
• Aligning education with real-world job training and certifications
   

According to the White House, this initiative is designed &ldquo to fully equip the American worker to produce world-class products and implement world-leading technologies.&rdquo
 

How will Historically Black Colleges and Universities (HBCUs) be affected?

Trump revoked a previous advisory council from the Biden administration and launched a new White House initiative focused on empowering HBCUs. The order highlights HBCUs as &ldquo beacons of educational excellence,&rdquo and the administration promises stronger partnerships with private industries to expand student opportunities.

Key focus areas include:
 

• Affordable degree access
   
• Professional development pipelines for students
   
• Expanded private-sector involvement
   

The Environmental Protection Agency (EPA) has also been directed to dissolve the former HBCU and Minority Serving Institutions Advisory Council.
 

What is Trump&rsquo s plan for foreign funding in U.S. universities?

The final piece of this sweeping education reform targets foreign influence on U.S. campuses. Trump reinstated a transparency mandate that requires colleges to publicly disclose foreign gifts and donations.

During his first term, investigations into 19 campuses led to $6.5 billion in previously hidden foreign funds being disclosed. Trump now says his administration will revive those investigations and increase oversight to protect American students from foreign propaganda and exploitation.
 

&ldquo It is the policy of my Administration to end the secrecy surrounding foreign funds,&rdquo Trump declared in the executive summary, aiming to &ldquo safeguard America&rsquo s students and research.&rdquo

 

These seven executive orders mark one of the most significant shake-ups in U.S. education policy in recent years. Whether it&rsquo s about preparing students for AI, redefining fairness in discipline, or increasing transparency in higher education, Trump&rsquo s mandates are setting the stage for a new era of schooling in America.

For now, parents, educators, and institutions alike will be watching closely as these policies are implemented&mdash and debating what they mean for the future of American education.