As mentioned in my previous post on Headwinds for Mapletree Industrial Trust (MIT):
This news has now been announced with MIT's 3rd Largest Tenant Cyxtera Technologies entering the Chapter 11 Bankrupcy process
Cyxtera has contributed 3.2% of gross rental income for MIT as at 31 March 2023. While blue chip MIT boasts of a well-diversified tenant base, this negative news would inadvertently be a drag to its share price
With prices closing in to short-term Oct22 lows of $2.13 and long-term Covid Mar20 lows of $2.10, hopefully these price supports would hold the sellers at bay.
Bearish trend continues with the purple weekly MA50 sloping downwards and even acting as a resistance point in Apr23.
Other affected reits included Digital Core and Keppel DC, all putting up brave fronts to soothe shareholder sentiments.
It only goes to show that with new seemingly lucrative Data Centre businesses, risks do abound with every new investments that are outside of traditional property strengths of Reits.
Also with rising and persistant high interest rates, MIT and Reits being highly leveraged companies, will continue to face strong headwinds in the months ahead.
What are some of your thoughts of MIT moving forward? Let me know in the comments section below
Disclosure: I am currently vested in MIT 😅