0551 GMT - Mapletree Industrial Trust is likely to maintain its focus on data centers, UOB Kay Hian's Jonathan Koh says in a research report, as the brokerage retains a buy rating on the unit. The REIT aims to diversify into established data center markets in Asia Pacific and Europe to reduce concentration risk, the analyst notes. Additionally, management plans to expand its scale and strengthen its presence in Japan, where data centers offer positive yield spreads, and yen-based funding would help reduce its debt costs. However, the brokerage raises its risk-free rate assumption for the REIT to 3.00% from 2.75% due to elevated Singapore government bond yields, and lowers the target price to S$2.89 from S$3.05. Units closed 0.5% higher at S$2.15. (ronnie.harui@wsj.com)
(END) Dow Jones Newswires
January 28, 2025 00:51 ET (05:51 GMT)
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