Rating BUY (as at 23 June 2021)
Last Close SGD 2.78
Fair Value SGD 3.41
Deepening its data centre presence
• Proposed acquisition to boost data centre exposure
• Improved earnings visibility given long WALE and annual rental escalations
• Lower fair value of SGD3.41 due to slight ESG discount applied
Mapletree Industrial Trust (MIT) has a sizeable portfolio of industrial assets in Singapore which includes Data Centres, Hi-Tech Buildings, Flatted Factories and Business Parks. It has also successfully penetrated the U.S. and Canadian data centres market and thus offers investors a proxy to the fast-growing digitalisation and data outsourcing trends. Although the macroeconomic outlook remains subdued, MIT’s solid financial position, high quality management team and strategy of scaling up its data centre and Hi-Tech exposure would allow it to better withstand the uncertainties ahead, in our view.