Mapletree Industrial Trust's diversified tenant base lends resilience, says manager

DESPITE the challenging operating environment amid the uncertain nature of the ongoing Covid-19 pandemic, Mapletree Industrial Trust (MIT) remains resilient, thanks to its large and diversified tenant base, said its manager on Wednesday.

It said in a corporate update filed with the Singapore Exchange (SGX) that this diversification ensures that it is not overly dependent on any single tenant or trade sector while it focuses on tenant retention to maintain a stable portfolio occupancy.

MIT currently has more than 2,000 tenants across some 115 properties and six property segments: data centres, flatted factories, hi-tech buildings, stack-up/ramp-up buildings, business-park buildings and light industrial buildings.

MIT's manager also noted the trust's strong balance sheet, with more than S$600 million of committed facilities available and an interest coverage ratio of 6.4 times for Q4 FY20/21.

The trust recently completed the acquisition of a data centre in Virginia, United States. Meanwhile, the redevelopment of the Kolam Ayer 2 Cluster remains on track for completion in the second half of 2022.

MIT's manager noted that while business sentiment among local firms in Q2 2021 turned positive after four consecutive quarters in negative territory, the optimism was limited to the financial, manufacturing and wholesale sectors.

However, data centres are considered a resilient asset class with growth opportunities. The manager cited that CBRE is expecting investment in data centres in North America to increase this year, based on strong revenue growth projection.

Meanwhile, new and evolving technologies such as 5G, edge computing and Internet of Things will continue to drive interest from operators to diversify their portfolios to serve smaller secondary and tertiary markets, said MIT's manager.

Units of MIT ended Wednesday down S$0.03 or 1.1 per cent at S$2.79.