See: Continued resilience, quality portfolio present 'attractive prospects' for this REIT: DBS
The trust on Monday announced that its 4Q20 DPU was 7.5% down y-o-y at 2.85 cents, with revenue increasing by 3.0% y-o-y to $101.8 million. But on a full-year basis, DPU marginally increased by 0.7% y-o-y to 12.24 cents, with growth coming the trust’s 13 newly-acquired data centres in North America via a joint venture.
See: Mapletree Industrial Trust reports 7.5% drop in 4Q DPU to 2.85 cents
Portfolio occupancy improved to 91.5% at end-4Q with an uptick in Singapore properties and higher US occupancy, while rental reversion remained stable.
Looking ahead, MINT has 17.7%/17% of its gross rental income to be renewed in FY21/FY22. Management said about 55% of its Singapore portfolio is made up of SME tenants and about half its tenants stayed open during the Circuit Breaker period. That said, it has rolled out a Covid-19 relief programme of up to $13.7 million.
Meanwhile, flatted factories accounted for some 37% of MINT’s FY20 NPI. Hence, CGS-CIMB has assumed one to two months’ of rental rebates within the trust’s flatted factories portfolio and factored in a 1-3 percentage point increase in vacancies over FY21-22.
“Nonetheless, a full-year’s contribution from the newly-acquired data centres in US and Canada should partly offset some of the expected weaker Singapore performance, in our view,” says Lock.
MINT purchased an attributable 50% stake in three fully fitted hyperscale and 10 powered shell data centres in US and Canada, for $695.4 million. These assets are estimated to add some $29 million of net profit into MINT’s bottomline for FY21, while total overseas contributions is projected to make up about 16% of the trust’s FY21 distributable income.
As at 3.30pm, units in MINT are trading 1.19% higher at $2.56 or 1.5 times FY20 book with a dividend yield of 5.0%.
