Mapletree Industrial Trust portfolio proves resilient: DBS

Its diversified industrial properties have been posting healthy reversions, occupancies and retention rates.

Looking ahead, MINT performance will continue to be stable but growth could be nipped as tenants buckled under the pressure of rising costs.

Here's more from DBS:

Resilient portfolio, healthy reversions. MINT’s diversified portfolio of industrial properties continued to exhibit resilience, achieving reversions of between 15% and 29%. Occupancies were stable at 94.9% in 4Q12 (vs 95.1% in 3Q12) and the average portfolio rental at S$1.55 psf/mth was slightly higher. Retention rates remained healthy at 76.1%.

Our View. Stable performance expected; renewal gap should narrow in our view. Looking ahead, we believe performance will remain relatively stable with portfolio near full occupancy. The manager’s strategy to lengthen its WALE has met with good response, with tenants offered leases with longer tenures. While there will be organic growth from expiring rents in view of the positive spread between passing and market rents, we expect the pace of growth to moderate given the uncertain operating environment with end tenants facing cost pressures on all front.