Tuesday, January 25, 2022

Mapletree Industrial Trust 3Q FY21/22 Results

 



Mapletree Industrial Trust (SGX.ME8U) announced its 3Q FY21/22 results today.

Most importantly for unitholders, dividend per unit (DPU) increases 6.4% to 3.49 cents relative to 3Q FY20/21.

The DPU of 3.49 cents will be paid on 15 Mar 2022. Distribution Reinvestment Plan (DRP) has been resumed and unitholders can opt to receive their dividends in units instead. DRP is a great scheme to leverage on the power of compounding without incurring transaction or brokerage costs if unitholders do not mind the odd units. The reason for DRP is to strengthen balance sheet and to finance the redevelopment of Kolam Ayer 2.

Higher gross revenue (+31.3%) translating into higher net property income (+24.1%) do certainly look impressive. The increases were mainly driven by contributions from the acquisitions of 29 data centres in the United States and 8011 Villa Park Drive, Virginia.

Portfolio occupancy has dropped marginally from 93.7% in previous quarter to 93.6%. This was due to the low 87.4% occupancy rate of the 29 data centres in US.

The weighted average cost of debt of Mapletree Industrial Trust is 2.3% per annum and interest coverage ratio is high at 6.4 times. Gearing is a little high at 39.9%.  9.2% of total borrowings are due for refinancing in FY21/22 and 13% due in FY22/23 so the higher interest rates should have some impact on its financing costs but hopefully will not impact its DPU much this year.

I believe Mapletree Industrial Trust is a great Reit to own and accumulate for the long-term due to its track record, historical DPU growth rate and ownership of a resilient class of income producing industrial properties and data centres with long WALE. 

I currently own 8,000 shares of Mapletree Industrial Trust and intend to continue accumulating it for the long-term for stable and growing dividend income.

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Thanks for reading. Stay safe and be strong as always. 

With love & peace, 
Qiongster


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