Mapletree Industrial Trust faces headwinds on its data centers, UOB Kay Hian's Jonathan Koh says in a research report.
The REIT cautioned that lease expiries for some of its U.S. data centers may lead to non-renewals over next 2 years, the analyst notes. Vacant space in its data centers in Philadelphia, San Jose and Atlanta may only be back-filled by 50% under the brokerage's base-case scenario.
UOB Kay Hian lowers its distribution-per-unit forecast for the REIT by 1% for FY 2025 and by 4% for FY 2026. It trims the target price to S$2.70 from S$2.89 and maintains a buy rating. Units are unchanged at S$2.03.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.