Mapletree Industrial Trust's Dividend Analysis
Understanding the Dividend Performance and Sustainability of Mapletree Industrial Trust (MAPIF)
Mapletree Industrial Trust (MAPIF) recently announced a dividend of $0.03 per share, payable on an undetermined date, with the ex-dividend date set for 2023-11-01. As investors anticipate this forthcoming payment, it's essential to examine the company's dividend history, yield, and growth rates. Utilizing data from GuruFocus, we 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 specializing in industrial properties and data centers. Its property portfolio comprises 85 properties in Singapore and 56 properties in North America, including 13 data centers held through a joint venture with its sponsor, Mapletree Investments Private Limited. The trust is externally managed by Mapletree Industrial Trust Management Limited, a subsidiary of its sponsor, which owns around a 31% stake in the trust.
A Glimpse at Mapletree Industrial Trust's Dividend History
Mapletree Industrial Trust has maintained a consistent dividend payment record since 2012, with dividends currently distributed on a quarterly basis. The chart below illustrates annual Dividends Per Share for tracking historical trends.
Breaking Down Mapletree Industrial Trust's Dividend Yield and Growth
As of today, Mapletree Industrial Trust currently has a 12-month trailing dividend yield of 4.95% and a 12-month forward dividend yield of 4.90%, suggesting an expectation of decreased dividend payments over the next 12 months.
Over the past three years, Mapletree Industrial Trust's annual dividend growth rate was 8.60%. Extended to a five-year horizon, this rate decreased to 2.70% per year. Over the past decade, Mapletree Industrial Trust's annual dividends per share growth rate stands at 3.80%.
Based on Mapletree Industrial Trust's dividend yield and five-year growth rate, the 5-year yield on cost of Mapletree Industrial Trust stock as of today is approximately 5.66%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-09-30, Mapletree Industrial Trust's dividend payout ratio is 1.33, which may suggest that the company's dividend may not be sustainable.
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
Mapletree Industrial Trust's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Mapletree Industrial Trust's revenue has increased by approximately 5.60% per year on average, a rate that outperforms approximately 71.61% of global competitors. The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Mapletree Industrial Trust's earnings increased by approximately -14.70% per year on average, a rate that outperforms approximately 25.77% of global competitors. Lastly, the company's 5-year EBITDA growth rate of -6.70% outperforms approximately 22.57% of global competitors.
Conclusion
While Mapletree Industrial Trust's consistent dividend payments and growth rates are commendable, the high payout ratio raises sustainability concerns. Despite this, the company's strong profitability and growth metrics suggest potential for future performance. Investors should closely monitor these factors to make informed decisions.
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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.
