3 REITs Are Embarking On Acquisition Spree
Key Highlights:
Mapletree Industrial Trust, Mapletree Logistics Trust and Keppel DC REIT are embarking on an acquisition spree
Both Mapletree Industrial Trust and Keppel DC REIT are acquiring data centres which are yield accretive to the portfolios
Mapletree Logistics Trust is buying a warehouse in Melbourne
Mapletree Industrial Trust (MINT)
Source: Mapletree Industrial Trust homepage
Together with its sponsor, MINT formed a 50:50 joint venture to acquire 10 data centres from NYSE-listed REIT Digital Realty. The total acquisition is worth US$557.3m. Besides, the joint venture entity, Mapletree Rosewood Centre Trust and Digital Realty would co-invest in three fully fitted data centres for US$810.6m.
Why the acquisitions are attractive
The 13 properties spread across North America enjoy 100% occupancy with a weighted average lease of 9.1 years.
More than 92% of the leases have annual fixed rental escalations of 2%
12 out of the 13 properties are freehold
The acquisitions will boost MINT's yield by 3.5% and NAV per share by 3.3%
Keppel DC REIT
Source: Keppel DC REIT homepage
Keppel DC REIT is acquiring 99% interest in Keppel DC Singapore 4 for $384.9m and 100% interest of 1-Net North Data Centre for $200.2m
Why the acquisitions are attractive
The acquisition will boost its portfolio by 30.7% to $2.58b, with 17 data centres globally
The occupancy rate is improved to 94.1% from 93.2%, with an average weighted lease of 8.9 years (pre-acquisition is 7.8 years)
Both the properties are expected to be yield accretive
Mapletree Logistics Trust (MLT)
Source: Mapletree Logistics Trust homepage
MLT has entered into a conditional forward agreement to acquire a warehouse in Truganina, Melbourne for $17.4m. The property is estimated to yield a net property income of 6.3%. And it will be funded by debt, which will increase its gearing by 0.1% to 36.9%.
We will be doing some portfolio rebalancing soon. Premium subscribers will receive email notification once the trade is confirmed.