DBS Group Research has reaffirmed its “buy” recommendation for Mapletree Industrial Trust (MINT), setting a 12-month price target of SGD2.60, representing a 31% upside from its last traded price of SGD1.99 on 7 August 2025. The research report notes that MINT’s recent divestment of three Singapore properties for SGD535 million, at a 2% premium to valuation, is expected to reduce its gearing from approximately 40% to 37%, thereby enhancing its financial flexibility for future acquisitions.
MINT, one of Singapore’s largest industrial landlords, has a diversified portfolio that includes data centres and high-specification properties catering to various industries. This diversification is seen as a strength, particularly in light of recent concerns over dividend sustainability and capital value risks in the US. The trust has managed to renew or backfill around 70% of lease expiries over the past two years, demonstrating the ongoing demand for its assets.
The report suggests that MINT’s increased debt capacity could facilitate acquisitions, potentially replacing income lost from divestments. The manager is reportedly exploring opportunities in developed markets in Asia and Europe. “We see a gradual bottoming out trend with upside from acquisitions,” the report states, maintaining the SGD2.60 target price based on discounted cash flow analysis.
However, DBS cautions that higher interest rates could impact distribution per unit (DPU) estimates. Additionally, a sustained weakness in the USD:SGD exchange rate poses a medium-term risk, although 90% of MINT’s income is hedged for the next 12 months.
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