Earlier this morning, Mapletree Industrial Trust (MINT) announced the acquisition of 60% stake in a portfolio of 14 data centres in the United States. Pre-acquisition, MINT held a 40% stake it acquired in 2017 together with its parent, which acquired 60%. Post-acquisition, MINT will own 100% of the portfolio and its exposure to the US will increase to 32.5%; data centres will now make up 39% of its portfolio.
The portfolio is an extension of what it already has and improves the stability of MINT’s income with a long WALE of 4.6 years, occupancy of 97.4% and less than 20% of leases expiring in the next 3 years. I think this plays very nicely into the whole data infrastructure trend that Covid-19 has accelerated. Importantly for shareholders, the acquisition is DPU accretive by 3.4% on a pro-forma basis. While minority shareholders could have their % stakes diluted somewhat by the placement, I think that this is largely irrelevant as DPU continues to grow and individual shareholders really don’t own that much %-wise.