Mapletree Industrial Trust's 1Q FY25/26 Result Review

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Gross revenue and NPI remained relatively stable year-on-year, with NPI up slightly due to stronger contributions from the Osaka and Tokyo data centres and new leases in the Singapore portfolio. Borrowing costs declined, supported by:

• Lower interest rates on unhedged loans
• A weaker USD against the SGD

However, the amount available for distribution and DPU declined, primarily due to:

• A significant drop in distributions from joint ventures, as a result of higher borrowing costs from repriced interest rate swaps
• Absence of distribution from net divestment gain, which was present in the same quarter last year
• Slight DPU dilution from an enlarged unitholder base

Excluding the impact of the divestment gain, DPU would have declined by around 1.5% YoY.

Rental Reversion

MIT recorded a healthy weighted average rental reversion of +8.2% in 1Q FY25/26. 

Divestment

In May 2025, MIT completed the divestment of its Georgia data centre. Additionally, it has announced the sale of three Singapore industrial properties, expected to complete by 3Q 2025. All divestments were executed at prices above both the purchase prices and the latest valuations.

Related Parties Shareholding

• REIT Sponsor's Shareholding: Moderate
• REIT Manager's Shareholding: Favorable
• Directors of REIT Manager's Shareholding: Favorable

Lease Profile

• Committed Occupancy: Moderate
• Highest Annual Lease Expiry in 4 Years: Moderate
• WALE: Moderate
• Weighted Average Land Lease Expiry: Moderate

Debt Profile

• Adjusted Interest Coverage Ratio: Favorable
• Cost of Debt: Favorable
• Gearing Ratio: Moderate
• Fixed Rate Debt Proportion: Moderate
• Unsecured Debt Proportion: Favorable
• Highest Annual Debt Maturity in 4 Years: Moderate
• WADM: Moderate

Diversification Profile

• Top Geographical Weightage: Less Favorable
• Top Property Weightage: Moderate
• Top 5 Properties' Weightage: Favorable
• Top Tenant Weightage: Moderate
• Top 10 Tenants' Weightage: Favorable

Key Financial Metrics

• Property Yield: Favorable
• Manager's Fees over Operating Distributable Income: Moderate
• Operating Distributable Income on Capital: Favorable
• Operating Distributable Income Margin: Favorable
• Operating Distribution Proportion: Moderate

DPU Breakdown

• TTM Distribution Breakdown:
• 94.7% from Operation
• 2.2% from Management Fees Paid in Units
• 2.6% from Divestment Proceeds
• 0.5% being Retained

Trends (Up to 10 Years)

• Uptrend: DPU from Operations, NAV per Unit, Top 10 Tenants' Weightage
• Slight Uptrend: None
• Flat: Committed Occupancy
• Slight Downtrend: Operating Distribution Proportion
• Downtrend: Adjusted Interest Coverage Ratio, Top 5 Properties' Weightage, Property Yield, Operating Distributable Income over Manager's Fees, Operating Distributable Income on Capital, Operating Distributable Income Margin

Price Range & Relative Valuation Metrics

• Dividend Yield: Average for 1y & 10y; Above +1SD for 3y & 5y
• P/NAV: Average for 1y, 3y, 5y & 10y

Author's Opinion

Compared to the previous quarter, NPI has improved slightly due to reduced property expenses, despite a marginal decline in revenue. While borrowing costs eased, the dip in JV contributions and absence of divestment-related income resulted in a lower amount available for distribution and DPU. On the debt front, around 17% (including share of JV loans) is due in the current fiscal year.

For more information, check out:

S-REITs Dashboard - Detailed information on individual Singapore REIT

S-REITs Data - Overview and detail of Singapore REITs

S-REIT Comparison - Comparison among Singapore REITs

REIT Review - List of previous REIT review posts

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*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my findings and should not be considered professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decisions.