Here's why I bought an additional 1,500 shares of Mapletree Industrial Trust at $2.03 per share

All right, as we approach the end of 2025 with the year-end bonus in our pockets, we might be feeling rich AF. Hence, I thought its apt for me to revisit my value investing strategy, and take a look at which stocks are at "good value." (I'll cover more of what good value means in this post) Remember my previous post, which states that one of my goal for 2025 was to hit a $10,000 annual passive income and achieve a $1,000 monthly passive income? This jolted me to review my existing income portfolio and revisit which stock may be at "good value," that makes investing my year-end bonus worth the while. And yes, Mapletree Industrial Trust (ME8U.SI) caught my eye. Here's why this blue-chip REIT is "good value" to me.

1. The Price to Book ratio of Mapletree Industrial Trust at 1.2X is the same as it was back in 2017.

Holy cow, it doesn't make sense. 2017 was before this stock acquired its data-center assets. Yes, I know that Mapletree Industrial Trust data center assets are based in the USA and the occupancy rate is not as high as the ones in SG. And yes, there are other issues such as the capability of its current data center assets and whether they are equipped to deal with the increased demand from AI tech and what not. But long story short, to totally discount the data center assets of Mapletree Industrial Trust and to price it at the same 1.2X PB when it still in the traditional industrial space does not make sense. Hence, for me personally, this valuation fits one of the "good value" criteria for REITS.

2. Mapletree Industrial Trust has a consistent growth in its dividend pay-out since 2015.

A 10 year time period is sufficient in seeing if a REIT is able to consistently increase its dividend pay out. Back in 2015, Mapletree Industrial Trust paid out $0.108 per share. In 2025, the counter paid out $0.132. That translates to a slightly more than 2% annual increase in dividend over the past 10 year period. Yes, I am aware that this is not fantastic. But at least an increment in dividend helps to prevent your dividend pay out from being eroded by inflation. So yes, the track record of Mapletree Industrial Trust to be able to increase its dividend pay out over a 10 year period is a sign of well-managed REIT.

3. Generally healthy occupancy rates with good rental retention. Lets throw in a healthy debt profile too.

Arguably, one of the most important operational metrics to look at would be a REIT's occupancy rate AND its ability to retain its tenants. Mapletree Industrial Trust occupancy rates for its SG properties stood at about 92% and its US properties stood at about 88%. Moreover, the REIT's ability to achieve an 84.5% retention rate is commendable, given that it operates its data center properties in a highly challenging US market. For me, while not stellar, its operational metrics can be rated as very decent.

Not forgetting a REIT's ability or inability to manage its debt, could lead to its long term decay and eventual demise. Mapletree Industrial Trust proves that it should be given a vote of confidence. Its interest coverage ratio stands at about 3.9X, with an average cost of debt at about 3%. Its debt maturity is also well-spread out with less than 20% of debt needing re-financing over the next 3 financial year. So yes, a REIT ability to manage its debt profile is a sign of good management. For this, I am in.

4. Lastly, at $2.03 per share, there's an attractive indicative dividend yield of about 6.5%. Couple this with a quarterly dividend pay out, I'm in.

Ok, I am going to say this out right. PLEASE DO NOT BUY A REIT BASED SOLELY ON ITS DIVIDEND YIELD. Yes, the bolded and capped sentence is intentional. However, in the case of Mapletree Industrial Trust, its competent management, solid operational metrics and favourable macro environment of declining interest rates, justifies "good value." At 6.5% dividend yield, even if you factor in a margin of safety of 10%, a decreased dividend yield at 5.85%, still allows for an attractive yield spread of 1.85% versus the CPF SA rate of 4%. Couple this with a quarterly payout schedule, this makes for a juicy buy.

All in all, this was my thought process I applied, when deciding whether to accumulate more shares of Mapletree Industrial Trust. It is non-exhaustive and please do your own due diligence when deciding whether to buy any shares.

That's all for now, as always stay calm and invested for the long game.

Yours sincerely,

Finance Kaya Toast







Disclosure: This article was written as me talking to myself as an ordinary Singaporean, wishing to achieve financial freedom. It does not represent any financial advise. All opinions are independent and represent just my two-cents on all matters financially-related.  

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