Mapletree Industrial Trust’s acquisition drought likely to persist amid high cost of capital

INVESTORS pining for inorganic growth from Mapletree Industrial Trust (Mint) are expected to continue to be disappointed for now, as the real estate investment trust (Reit) manager is likely to extend its acquisition drought until at least the middle of next year.

The Singapore-listed real estate investment trust (S-Reit) has not announced any acquisitions since May 2021, when it proposed the purchase of a portfolio of 29 data centres in the US for S$1.8 billion.

As at end September 2022, Mint’s assets under management (AUM) stood at S$8.9 billion, with data centres in North America accounting for just over half of its portfolio value. The Reit manager had earlier guided that its long-term strategy is for two-thirds of its portfolio contribution to come from data centres.