Mapletree Industrial Trust Earnings: Power Study Yields Positive Findings; Units Undervalued

Mapletree Industrial Trust’s fourth-quarter fiscal 2025 (ending March) performance was in line with our expectations. Net property income fell a slight 0.5% year on year, driven by nonrenewal of leases in its North American portfolio and loss of income contribution from its divested Tanglin Halt Cluster. This is partly offset by the contribution from its newly acquired Japan data centers. After rolling our model and updating our assumptions, we retain our fair value estimate of SGD 2.30 per unit. The trust currently screens as undervalued and trades at an attractive fiscal 2026 dividend yield of 6.8%. Over our five-year forecast period, we expect the trust's distribution per unit to grow at a compound annual growth rate of 5.0%, driven by 2%-4% rental growth, better property margins, and accretive acquisitions.