Brokers' take

Mapletree Industrial Trust > Buy (upgraded) UOB Kay Hian, Sept 13 Sept 13 close: S$2.33 Target price: S$2.58

MAPLETREE Industrial Trust (MIT) has reshaped its portfolio of investment properties. MIT's strategy to grow its high-tech buildings segment is transformational. It has expanded exposure to high-tech buildings to 43.3 per cent of portfolio valuation as of end-FY2019, compared to 18.9 per cent five years ago. This is much larger than flatted factories at 33.1 per cent.

The repositioning towards high-tech buildings and expanded exposure to data centres will help MIT weather macro uncertainties and escalation in trade conflicts. We view acquisitions to further increase exposure to data centres as a positive catalyst.