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Mapletree Industrial Trust's Dividend Analysis

Dissecting the Dividend Performance of Mapletree Industrial Trust (MAPIF)

Mapletree Industrial Trust (MAPIF) recently announced a dividend of $0.03 per share, payable on 2024-03-07, with the ex-dividend date set for 2024-02-01. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's delve into Mapletree Industrial Trust's dividend performance and assess its sustainability.

What Does Mapletree Industrial Trust Do?

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Mapletree Industrial Trust is a real estate investment trust focusing on industrial properties and data centers. Its property portfolio consists of 85 properties in Singapore, 56 properties in North America (including 13 data centers held through a joint venture with its sponsor, Mapletree Investments Private Limited) and one property in Osaka. Types of property owned include data centers, high-tech buildings, business parks, and general industrial. The trust is externally managed by Mapletree Industrial Trust Management Limited, a subsidiary of its sponsor, which owns around 31% stake in the trust.

Mapletree Industrial Trust's Dividend Analysis
Mapletree Industrial Trust's Dividend Analysis

A Glimpse at Mapletree Industrial Trust's Dividend History

Mapletree Industrial Trust has established a consistent dividend payment track record since 2012, with dividends currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share to track historical trends.

Breaking Down Mapletree Industrial Trust's Dividend Yield and Growth

As of today, Mapletree Industrial Trust has a 12-month trailing dividend yield of 3.97% and a 12-month forward dividend yield of 3.98%, indicating an expectation of increment in dividend payments over the next 12 months.

Over the past three years, Mapletree Industrial Trust's annual dividend growth rate was 8.60%, which decreased to 2.70% per year over a five-year horizon. The trust's annual dividends per share growth rate over the past decade stands at 3.80%.

Considering Mapletree Industrial Trust's dividend yield and five-year growth rate, the 5-year yield on cost for the stock as of today is approximately 4.54%.

Mapletree Industrial Trust's Dividend Analysis
Mapletree Industrial Trust's Dividend Analysis

The Sustainability Question: Payout Ratio and Profitability

Evaluating the sustainability of the dividend requires an examination of the company's payout ratio. The dividend payout ratio, which stands at 1.41 as of 2023-09-30, provides insights into the portion of earnings the company distributes as dividends. This ratio may suggest that the company's dividend could be at risk.

Mapletree Industrial Trust's profitability rank of 7 out of 10 as of 2023-09-30, suggests good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.

Growth Metrics: The Future Outlook

Robust growth metrics are essential for the sustainability of dividends. Mapletree Industrial Trust's growth rank of 7 out of 10 indicates a good growth trajectory relative to its competitors.

Mapletree Industrial Trust's revenue per share and 3-year revenue growth rate of approximately 5.60% per year on average outperforms about 71.79% of global competitors.

The company's 3-year EPS growth rate of approximately -16.90% per year on average, while not as robust, still outperforms about 22.12% of global competitors.

The 5-year EBITDA growth rate of -7.20% also outperforms about 25.42% of global competitors, indicating some areas of growth despite the challenges.

Next Steps

In conclusion, Mapletree Industrial Trust's upcoming dividend, historical dividend growth, and the yield on cost offer an attractive proposition for income-focused investors. However, the high payout ratio raises questions about the sustainability of the dividend, despite the trust's good profitability rank and growth metrics. As Mapletree Industrial Trust navigates the industrial property and data center markets, investors should weigh these factors carefully when considering the trust's dividends. For those seeking high-dividend yield stocks, GuruFocus Premium provides a valuable tool with the High Dividend Yield Screener.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

This article first appeared on GuruFocus.