For investors preferring to invest in a portfolio of industrial and data centre properties, Mapletree Industrial Trust (SGX: ME8U), or MIT, is one you may consider.
Currently, MIT’s portfolio comprises of 141 properties located in Singapore, the United States, and Japan, valued at a total of S$9.2 billion.
MIT is also the last of the trio of Mapletree REITs to release its 4Q and FY2024/25 results earlier this evening (30 April). To recap, Mapletree Logistics Trust was the first to do so on 23 April, followed by Mapletree Pan Asia Commercial Trust on 25 April, and you can find my review via the respective links below:
- Mapletree Logistics Trust’s 4Q and FY2024/25 Results Reviewed: What Investors Need to Know
- How did Mapletree Pan Asia Commercial Trust Fare in its 4Q & FY2024/25 Results?
One recent on the REIT was the proposed divestment of a data centre in Georgia, United States (2775 Northwoods Parkway, Norcross, Georgia) announced last Wednesday (24 April 2025), with the sales price (of US$11.8 million) representing an 18.6% premium above the independent valuation of US$9.95 million as at 31 March 2025. Proceeds from the divestment (expected to be completed in the 2nd quarter of 2025) will be used to pare down debt and/or fund working capital requirements. For information, the property contributed just 0.1% towards the REIT’s gross revenue in FY2023/24 ended 31 March 2024.
In this post, you’ll find my review of MIT’s latest financial figures, portfolio occupancy and debt profile, as well as its distribution payout to unitholders:
Financial Figures (4Q FY2023/24 vs. 4Q FY2024/25, and FY2023/24 vs. FY2024/25)
MIT is one of the few Singapore-listed REITs to report year-on-year improvements in its top- and bottom-lines for the first 3 quarters of the current financial year.
Has this trend managed to continue in the 4th quarter? Let us find out in the table below, along with a comparison of its financial figures reported for the full year:
4Q FY2023/24 vs. 4Q FY2024/25:
| 4Q FY2023/24 | 4Q FY2024/25 | % Variance | |
| Gross Revenue (S$’mil) | $178.7m | $177.8m | -0.5% |
| Property Operating Expenses (S$’mil) | $46.9m | $46.6m | -0.6% |
| Net Property Income (S$’mil) | $113.8m | $131.2m | -0.5% |
| Distributable Income to Unitholders (S$’mil) | $95.6m | $96.3m | +0.7% |
On the whole, it was a slightly weaker set of results reported by MIT for the 4th quarter, with gross revenue and net property income inching down by 0.5% year on year to S$177.8 million and S$131.2 million respectively, mainly due to non-renewal of leases in the wholly-owned North American portfolio, along with the loss of revenue from the divestment of the Tanglin Halt cluster in March 2024. However, this was partly offset by contribution from the mixed-used facility in Tokyo acquired in FY2024/25, and higher contributions from the renewals and new leases at the various Singapore clusters.
Property operating expenses saw a marginal 0.6% year on year dip to S$46.6 million, from lower utilities expenses at its properties in Singapore.
MIT’s distributable income to unitholders edged up by 0.7% year on year to S$96.3 million as a result of a 7% year-on-year decline in borrowing costs (due to effects from repayment of loans using the proceeds from the divestment of the Tanglin Halt cluster, and lower interest on unhedged floating rate loans, partially offset by higher borrowing costs relating to the Japan portfolio).
FY2023/24 vs. FY2024/25:
| FY2023/24 | FY2024/25 | % Variance | |
| Gross Revenue (S$’mil) | $697.3m | $711.8m | +2.1% |
| Property Operating Expenses (S$’mil) | $176.3m | $180.4m | +2.3% |
| Net Property Income (S$’mil) | $521.0m | $531.5m | +2.0% |
| Distributable Income to Unitholders (S$’mil) | $375.1m | $388.1m | +3.5% |
While MIT’s financial performance saw a slight dip for the 4th quarter, but for the full year, its still stable – with its gross revenue, net property income, and distributable income to unitholders up by a low-single digit percentage.
The 2.1% year on year increase in gross revenue to S$711.8 million was largely due to higher revenue contribution from Osaka Data Centre post-completion of Phases 2 and 3 fitting out works, the newly acquired mixed-use facility in Tokyo, along with renewal and new leases at its Singapore portfolio. However, this was partially offset by the loss of income from the divestment of the Tanglin Halt cluster, and non-renewal of leases at its North America portfolio.
Portfolio occupancy expenses rose by 2.3% year on year to S$180.4 million mainly attributed to higher property maintenance, recoverable utility expenses, and marketing expenses from the leasing activities in the current financial year.
As a result of a higher net property income, and a 1.4% year-on-year decline in borrowing costs (mainly driven by the effects of loan repayments using proceeds from the divestment of Tanglin Halt cluster, partly offset by additional borrowing costs relating to the Japan portfolio), MIT’s distributable income to unitholders saw a 3.5% year-on-year improvement to S$388.1 million.
Portfolio Occupancy Profile (3Q FY2024/25 vs. 4Q FY2024/25)
MIT has a healthy portfolio occupancy profile, where it has managed to maintain its overall occupancy of its properties at above 90%. In terms of lease expiries, they are also well-staggered over the years – something which I like as an investor.
In the table below, you will find a comparison of MIT’s portfolio occupancy profile reported for the current quarter under review (i.e., 4Q FY2024/25 ended 31 March 2025) against that reported in the previous quarter 3 months ago (i.e., 3Q FY2024/25 ended 31 December 2024) to find out if it has continued to remain at optimal levels:
| 3Q FY2024/25 | 4Q FY2024/25 | |
| Portfolio Occupancy (%) | 92.1% | 91.6% |
| Portfolio WALE (by Gross Rental Income – years) | 4.5 years | 4.4 years |
MIT’s portfolio occupancy weakened slightly (where it fell by 0.5 percentage points [pp] to 91.6%) due to a slight dip in the occupancy rate of its data centres (down from 91.6% in 3Q FY2024/25 to 89.9% in 4Q FY2024/25), stack-up/ramp-up buildings (down from 96.7% in 3Q FY2024/25 to 96.1% in 4Q FY2024/25), as well as in its light industrial buildings (down from 52.0% in 3Q FY2024/25 to 50.8% in 4Q FY2024/25).
In terms of lease expiries, they are well-spread out – with an average of about 18% of leases due for renewal in the next 3 financial years (between FY2025/26 and FY2027/28), with the remaining 46% of leases due for renewal only in FY2028/29 or later.
Rental reversion for new and/or renewed leases for 4Q FY2024/25 was at a positive +8.1%.
Debt Profile (3Q FY2024/25 vs. 4Q FY2024/25)
As far as MIT’s debt profile over the previous quarters are concerned, they are maintained at healthy levels – in the 3rd quarter, it has an aggregate leverage at 39.8%, as well as having 78.3% of borrowings hedged at fixed rates (hence mitigating any impacts of interest rate fluctuations have on borrowing costs, and on its distribution payout to unitholders).
What about for the 4th quarter? Has MIT’s debt profile continued to remain healthy? Let us find out in the table below, where you will find its debt profile reported for the current quarter (i.e., 4Q FY2024) against that reported in the previous quarter (i.e., 3Q FY2024), as follows:
| 3Q FY2024/25 | 4Q FY2024/25 | |
| Aggregate Leverage (%) | 39.8% | 40.1% |
| Interest Coverage Ratio (times) | 4.7x | 4.3x |
| Average Term to Debt Maturity (years) | 3.1 years | 3.4 years |
| Average Cost of Debt (%) | 3.1% | 3.0% |
| % of Borrowings Hedged to Fixed Rates (%) | 78.3% | 78.1% |
MIT’s debt profile, when compared against the previous quarter, was a mixed bag – on one hand, aggregate leverage inched up by 0.3pp to 40.1% (however, it is still a safe distance to the regulatory limit of 50%); but on the other, average cost of debt edged down by 0.1pp to 3.0%.
In terms of debt maturity in the coming financial year ahead, its also well-spread out – with an average of about 19% of borrowings due for refinancing over the next 4 financial years (between FY2025/26 and FY2028/29), with the remaining 24% of borrowings due for refinancing in FY2029/30 or later.
Distribution Payout to Unitholders
The following table is a comparison of MIT’s distribution payout to unitholders for 4Q FY2024/25 against that declared a year ago:
| 4Q FY2023/25 | 4Q FY2024/25 | % Variance | |
| Distribution Per Unit (S$’cents) | 3.36 cents | 3.36 cents | – |
Together with its payout of 3.43 cents in 1Q, 3.37 cents in 2Q, and 3.41 cents in 3Q, MIT’s total distribution payout for FY2024/25 amounts to 13.57 cents. When compared against its distribution payout of 13.43 cents declared a year ago, this represented a slight 1.0% year-on-year improvement (again, they are one of the few REITs that managed to continue to report a year-on-year improvement in its distribution payout).
Distribution reinvestment plan is suspended for the quarter. Hence all unitholders will receive their latest distribution payout in cash.
If you are a unitholder of MIT, do take note of the following dates on its distribution payout:
Ex-Date: 30 April 2025
Record Date: 02 May 2025
Payout Date: 13 June 2025
CEO Ms Lily Ler’s Comments and Outlook (from the REIT’s Press Release)
“MIT delivered a stable set of financial results in FY24/25 underpinned by our steady portfolio rebalancing initiatives in Japan. Headwinds from higher operating expenses and borrowing costs will continue to pose challenges to the portfolio. This may be compounded by the impact from possible escalation in trade tensions and the global trade policy uncertainty. To strengthen MIT’s resilience, we remain focused on pursuing selective divestments of non-core assets and accretive investments.”
Closing Thoughts
While MIT’s financial figures for the 4th quarter as a slightly weaker one (due to non-renewal of leases in the wholly-owned North American portfolio, along with the loss of revenue from the divestment of the Tanglin Halt cluster in March 2024), but for the full year, it was a slightly improved one (contributed by higher revenue contribution from Osaka Data Centre post-completion of Phases 2 and 3 fitting out works, the newly acquired mixed-use facility in Tokyo, along with lease renewals in its Singapore properties).
Looking at its portfolio occupancy profile, even though the overall occupancy rate of MIT saw a small decline, but most of the property types have an occupancy rate of at least 80% (which is still considered OK). The only exception was the occupancy rate of its light industrial buildings, which was at 50.8%.
On its debt profile, even though its aggregate leverage inched up slightly (to 40.1% in 4Q FY2024/25), but its still a healthy level (in my opinion) to the regulatory limit of 50%.
To conclude, despite the slight weakness here and there, but on the whole, I am of the opinion that the overall performance of MIT is a stable one.
This brings me to the end of my review of MIT’s latest results for the 4th quarter and for the full year ended 31 March. Just like for my previous posts, I do hope you have found the contents presented within useful. However, do take note that all the opinions in this post are purely mine which I’m sharing for educational purposes only. They do not constitute any buy or sell calls for the REIT’s units. You are strongly encouraged to do your own due diligence before making any investment decisions.
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Disclaimer: At the time of writing, I am a unitholder of Mapletree Industrial Trust.
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