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Mapletree Industrial Trust – Three Things That Investors Should Know

Credit: Lali Masriera

Mapletree Industrial Trust (SGX: ME8U) or MIT focusses on the industrial real estate sector and has 86 properties valued at S$3.77 billion, as of 30 June 2017.

In this article, we will look at three useful pieces of information about its property portfolio.

Historical occupancy and rental rates

There are two obvious trends from the chart above.

Firstly, occupancy rates have fluctuated between a low of about 90% and a high of 95.5%. Currently, the occupancy rate stands at 92.6%, which is roughly in the middle of the range.

Secondly, rental rate has been moving steadily higher, up from S$1.45 psm/month in FY10/11 to S$1.95 psm/month in FY17/18.

Tenant retention

From the above, we see that up to 63.3% of the clients have remained with the REIT for more than four years.

For 1Q FY17/18, the retention rate was 74.8%.

Diversified client base

Having a diversified client base improves the sustainability of income for a REIT.

The above statement is applicable to Mapletree Industrial Trust since it has up to 2,000 tenants, of which the top 10 tenants account for “only” 21.1% of the portfolio’s gross rental income.

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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 Lawrence Nga doesn’t own shares in any companies mentioned.