SGX:ME8U

Stock Analysis Report

Mapletree Industrial Trust

Executive Summary

Mapletree Industrial Trust is a real estate investment trust (“REIT”) listed on the Main Board of Singapore Exchange.


Snowflake Analysis

Second-rate dividend payer with limited growth.


Similar Companies

Share Price & News

How has Mapletree Industrial Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ME8U has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.1%

ME8U

-0.03%

SG REITs

-0.3%

SG Market


1 Year Return

41.3%

ME8U

16.7%

SG REITs

2.1%

SG Market

Return vs Industry: ME8U exceeded the SG REITs industry which returned 16.1% over the past year.

Return vs Market: ME8U exceeded the SG Market which returned 2.1% over the past year.


Shareholder returns

ME8UIndustryMarket
7 Day-1.1%-0.03%-0.3%
30 Day9.1%3.8%1.4%
90 Day9.9%1.2%2.8%
1 Year49.5%41.3%23.8%16.7%6.3%2.1%
3 Year100.9%67.9%52.5%26.0%14.9%2.6%
5 Year144.3%81.0%57.2%14.1%11.1%-7.4%

Price Volatility Vs. Market

How volatile is Mapletree Industrial Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Mapletree Industrial Trust undervalued compared to its fair value and its price relative to the market?

19.17x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ME8U (SGD2.8) is trading above our estimate of fair value (SGD1.49)

Significantly Below Fair Value: ME8U is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ME8U is poor value based on its PE Ratio (19.4x) compared to the REITs industry average (15.3x).

PE vs Market: ME8U is poor value based on its PE Ratio (19.4x) compared to the SG market (13.5x).


Price to Earnings Growth Ratio

PEG Ratio: ME8U is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: ME8U is overvalued based on its PB Ratio (1.8x) compared to the SG REITs industry average (1x).


Next Steps

Future Growth

How is Mapletree Industrial Trust forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

6.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ME8U's forecast earnings growth (6.1% per year) is above the savings rate (1.8%).

Earnings vs Market: ME8U's earnings (6.7% per year) are forecast to grow faster than the SG market (6.5% per year).

High Growth Earnings: ME8U's earnings are forecast to grow, but not significantly.

Revenue vs Market: ME8U's revenue (2.8% per year) is forecast to grow slower than the SG market (5.6% per year).

High Growth Revenue: ME8U's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ME8U's Return on Equity is forecast to be low in 3 years time (8.4%).


Next Steps

Past Performance

How has Mapletree Industrial Trust performed over the past 5 years?

-4.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ME8U has high quality earnings.

Growing Profit Margin: ME8U's current net profit margins (72.4%) are lower than last year (83.9%).


Past Earnings Growth Analysis

Earnings Trend: ME8U's earnings have declined by -4.8% per year over the past 5 years.

Accelerating Growth: ME8U's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ME8U had negative earnings growth (-7%) over the past year, making it difficult to compare to the REITs industry average (7.1%).


Return on Equity

High ROE: ME8U's Return on Equity (8.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Mapletree Industrial Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: ME8U has a low level of unsold assets or inventory.

Debt Coverage by Assets: ME8U's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: ME8U's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if ME8U has a sufficient allowance for bad loans.

Low Risk Liabilities: ME8U reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if ME8U has an acceptable proportion of non-loan assets held.

Low Risk Deposits: ME8U has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if ME8U has an appropriate level of bad loans.


Next Steps

Dividend

What is Mapletree Industrial Trust's current dividend yield, its reliability and sustainability?

4.39%

Current Dividend Yield


Dividend Yield vs Market

company4.4%marketbottom25%2.4%markettop25%5.5%industryaverage5.1%forecastin3Years4.8%

Current dividend yield vs market & industry

Notable Dividend: ME8U's dividend (4.34%) is higher than the bottom 25% of dividend payers in the SG market (2.5%).

High Dividend: ME8U's dividend (4.34%) is low compared to the top 25% of dividend payers in the SG market (5.41%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ME8U has been paying a dividend for less than 10 years.

Growing Dividend: ME8U's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (67%), ME8U's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ME8U's dividends in 3 years are forecast to be thoroughly covered by earnings (0.05% payout ratio).


Next Steps

Management

What is the CEO of Mapletree Industrial Trust's salary, the management and board of directors tenure and is there insider trading?

8.3yrs

Average management tenure


CEO

Kuo Wei Tham (50yo)

0yrs

Tenure

0

Mr. Tham Kuo Wei serves as the Chief Executive Officer of Mapletree Industrial Trust Management Ltd. and has been its Executive Director since July 23, 2010. Mr. Tham served as the Chief Investment Officer ...


Management Age and Tenure

8.3yrs

Average Tenure

Experienced Management: ME8U's management team is seasoned and experienced (8.3 years average tenure).


Board Age and Tenure

1.1yrs

Average Tenure

60yo

Average Age

Experienced Board: ME8U's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellS$1,956,99930 Sep 19
Temasek Holdings (Private) Limited
EntityCompany
Shares800,000
Max PriceS$2.45
BuyS$2,931,38502 Aug 19
Temasek Holdings (Private) Limited
EntityCompany
Shares1,283,500
Max PriceS$2.28
BuyS$7,76210 Jun 19
Kuo Wei Tham
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director of Mapletree Industrial Trust Management Ltd.
Shares3,844
Max PriceS$2.02
SellS$823,92404 Jun 19
DBS Group Holdings Limited, Asset Management Arm
EntityCompany
Shares393,300
Max PriceS$2.09
BuyS$525,00031 May 19
DBS Group Holdings Limited, Asset Management Arm
EntityCompany
Shares250,000
Max PriceS$2.10
BuyS$2,683,00022 Feb 19
Mapletree Industrial Trust Management Ltd
EntityCompany
Shares1,345,469
Max PriceS$1.99

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.1%.


Management Team

  • Kuo Wei Tham (50yo)

    CEO & Executive Director of Mapletree Industrial Trust Management Ltd.

    • Kwong Weng Wan

      Joint Company Secretary of Mapletree Industrial Trust Management Ltd

      • Tenure: 8.3yrs
    • Lily Ler (47yo)

      Chief Financial Officer

      • Tenure: 8.2yrs
    • Hui Hui See

      Joint Company Secretary of Mapletree Industrial Trust Management Ltd

      • Tenure: 8.6yrs
    • Peter Tan

      Head of Investment - Mapletree Industrial Trust Management Ltd

      • Melissa Tan

        Vice President

        • Miguel Vega Sun

          Manager of Treasury - Mapletree Industrial Trust Management Ltd - Manager

          • Wee Tan

            Group Chief Development Officer

            • Siok Khim Chng

              Head of Marketing - Mapletree Industrial Trust Management Ltd

              • Tzyy Tan

                Head of Property Management - Mapletree Industrial Trust Management Ltd


                Board Members

                • Meng Meng Wong (71yo)

                  Non-Executive Chairman of Mapletree Industrial Trust Management Ltd

                  • Tenure: 9.3yrs
                  • Compensation: S$116.50k
                • Guy Daniel Harvey-Samuel (62yo)

                  Independent Non-Executive Director of Mapletree Industrial Trust Management Ltd.

                  • Tenure: 2.5yrs
                  • Compensation: S$71.54k
                • Kuo Wei Tham (50yo)

                  CEO & Executive Director of Mapletree Industrial Trust Management Ltd.

                  • Mary Yeo (60yo)

                    Lead Independent Non-Executive Director of Mapletree Industrial Trust Management Ltd.

                    • Tenure: 0.4yrs
                    • Compensation: S$74.00k
                  • Tiow Chye Chua (60yo)

                    Non Executive Director of Mapletree Industrial Trust Management Ltd.

                    • Tenure: 0.08yrs
                  • Wendy Koh

                    Non-Executive Director of Mapletree Industrial Trust Management Ltd

                    • Tenure: 0.08yrs
                  • William Toh

                    Independent Non-Executive Director of Mapletree Industrial Trust Management Ltd

                    • Tenure: 1.3yrs
                    • Compensation: S$33.58k
                  • Andrew Chong

                    Independent Non-Executive Director of Mapletree Industrial Trust Management Ltd

                    • Tenure: 1.1yrs
                    • Compensation: S$14.64k
                  • Andrew Lee

                    Independent Non-Executive Director of Mapletree Industrial Trust Management Ltd

                    • Tenure: 1.1yrs
                    • Compensation: S$14.64k
                  • Soy Yoong Pok

                    Independent Non-Executive Director of Mapletree Industrial Trust Management Ltd

                    • Tenure: 1.1yrs
                    • Compensation: S$14.64k

                  Company Information

                  Mapletree Industrial Trust's company bio, employee growth, exchange listings and data sources


                  Key Information

                  • Name: Mapletree Industrial Trust
                  • Ticker: ME8U
                  • Exchange: SGX
                  • Founded: 2008
                  • Industry: Industrial REITs
                  • Sector: Real Estate
                  • Market Cap: S$6.118b
                  • Shares outstanding: 2.20b
                  • Website: https://www.mapletreeindustrialtrust.com

                  Number of Employees


                  Location

                  • Mapletree Industrial Trust
                  • 10 Pasir Panjang Road
                  • No.13-01, Mapletree Business City
                  • Singapore
                  • 117438
                  • Singapore

                  Listings

                  TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                  ME8USGX (Singapore Exchange)YesUnitsSGSGDOct 2010
                  M2LDB (Deutsche Boerse AG)YesUnitsDEEUROct 2010
                  MAPI.FOTCPK (Pink Sheets LLC)YesUnitsUSUSDOct 2010

                  Biography

                  Mapletree Industrial Trust is a real estate investment trust (“REIT”) listed on the Main Board of Singapore Exchange. Its principal investment strategy is to invest in a diversified portfolio of income-producing real estate used primarily for industrial purposes in Singapore and income-producing real estate used primarily as data centres worldwide beyond Singapore, as well as real estate-related assets. MIT’s property portfolio comprises 87 industrial properties in Singapore and 14 data centres in the United States (40% interest through the joint venture with Mapletree Investments Pte Ltd). The properties in Singapore include Hi-Tech Buildings, Flatted Factories, Business Park Buildings, Stack-up/Ramp-up Buildings and Light Industrial Buildings. As at 30 September 2019, MIT’s total assets under management was S$4.8 billion. MIT is managed by Mapletree Industrial Trust Management Ltd. and sponsored by Mapletree Investments Pte Ltd. 


                  Company Analysis and Financial Data Status

                  All financial data provided by Standard & Poor's Capital IQ.
                  DataLast Updated (UTC time)
                  Company Analysis2020/01/22 13:09
                  End of Day Share Price2020/01/22 00:00
                  Earnings2019/12/31
                  Annual Earnings2019/03/31


                  Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.