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3 Must-See Slides for Investors About Mapletree Industrial Trust

Credit: Axisadman

Mapletree Industrial Trust  (SGX: ME8U) has been one of the best performing billion-dollar real estate-related listed entities in Singapore’s stock market over the five years ended 26 August 2016.

As its name implies, Mapletree Industrial Trust focuses on the industrial sector and has 85 properties in its portfolio (all located in Singapore) that are valued at $3.6 billion, as of 31 March 2016. The REIT had recently delivered an investor presentation and shared its presentation deck with the public.

I thought there were three slides from the deck that investors should not miss.

High historical occupancy

2016-11-04-mapletree-industrial-trust-portfolio
Source: Mapletree Industrial Trust’s investor presentation

Mapletree Industrial Trust has been able to keep its its portfolio occupancy rate above 90% over the past six years.

Furthermore, the REIT has been able to extract higher rental rates during this timeframe. That being said, growth in average rental rates have stalled in the latest quarter.

Distributions galore

2016-11-04-mapltree-industrial-trust-dpu
Source: Mapletree Industrial Trust’s investor presentation

Mapletree Industrial Trust’s high level of occupancy could have supported the growth in its distributable income and distribution per unit (DPU). From the chart directly above, we can see that the REIT has built up a solid record of DPU growth.

Distributions lead to solid total returns     

2016-11-04-mapltree-industrial-trust-performance
Source: Mapletree Industrial Trust’s investor presentation

The rising DPU of the REIT has not gone unnoticed by the stock market.

Units of Mapletree Industrial Trust have appreciated by over 84% in price from its listing on 21 October 2010 to 24 October 2016. But here’s the kicker: When we add in the returns from the REIT’s distributions, its returns rose to 147% over the last six years. The REIT’s DPU contributed 62.7% in returns overall.

For more on Mapletree Industrial Trust, go here.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.