Listed on the Mainboard of the Singapore Exchange since October 2010, and subsequently included as a constituent in the benchmark Straits Times Index (STI) in June 2020, Mapletree Industrial Trust (SGX: ME8U), or MIT, invests in real estate assets used for industrial (such as hi-tech buildings, business park buildings, flatted factories, stack-up/ramp-up buildings, and light industrial buildings) and data centre purposes.
As at 30 June 2025, the blue chip REIT’s portfolio comprises 83 properties in Singapore, 55 properties in the North America (including 13 data centres held through the joint venture with Mapletree Investment Pte Ltd), and 2 properties in Japan, valued at a total of S$9 billion.
MIT was also the second of the trio of Mapletree REITs to report its 1Q FY2025/26 results (with the first being Mapletree Logistics Trust last Wednesday (23 July), and you can check out my review here, and Mapletree Pan Asia Commercial Trust reporting its results on Wednesday, 30 July).
In this post, you will find my review of MIT’s latest financial figures, portfolio occupancy and debt profile, as well as its distribution payout to unitholders:
Financial Figures (1Q FY2024/25 vs. 1Q FY2025/26)
| 1Q FY2024/25 | 1Q FY2025/26 | % Variance | |
| Gross Revenue (S$’mil) | $175.3m | $175.9m | +0.3% |
| Property Operating Expenses (S$’mil) | $42.7m | $42.3m | -0.9% |
| Net Property Income (S$’mil) | $132.5m | $133.6m | +0.8% |
| Distributable Income to Unitholders (S$’mil) | $97.9m | $93.3m | -4.7% |
On the whole, I would say MIT’s latest financial figures for 1Q remains stable – with gross revenue and net property income recording a small improvement. However, its distributable income to unitholders fell by 4.7% year on year to S$93.3 million mainly due to lower cash distribution declared by joint venture (as a result of higher borrowing cost from the repricing of matured interest rate swaps), along with the absence of distribution of gain from the divestment of Tanglin Halt sector.
Gross revenue inched up by 0.3% year on year to S$175.9 million, contributed by the newly acquired Tokyo property in October 2024, higher revenue from fitting-out works at Osaka Data Centre due to full quarter effects of Phase 3 and completion of the final phase in May 2025, as well as higher contributions from the renewals and new leases at the various properties in Singapore. However, this was partially offset by lower revenue from its properties in North America due to the depreciation of the US dollar against the Singapore Dollar.
Property operating expenses slid by 0.9% year on year, mainly due to lower utility expenses at its Singapore portfolio. This led to its net property income recording a slightly better improvement (compared to its gross revenue) at 0.8% year on year to S$133.6 million.
Portfolio Occupancy Profile (4Q FY2024/25 vs. 1Q FY2025/26)
Over the quarters, MIT’s portfolio occupancy has always been maintained at a high of 90% and above, with its lease expiries well-spread out (meaning there is no one single year where the REIT has a high percentage of leases due for renewal).
In the table below, you’ll find a comparison of the statistics reported for the current quarter under review (i.e., 1Q FY2025/26 ended 30 June 2025), against that reported in the previous quarter 3 months ago (i.e., 4Q FY2024/25 ended 31 March 2025) to find out if it has continued to remain the case:
| 4Q FY2024/25 | 1Q FY2025/26 | |
| Portfolio Occupancy (%) | 91.6% | 91.4% |
| Portfolio WALE (years) | 4.4 years | 4.5 years |
MIT’s portfolio occupancy edged down by 0.2 percentage points (pp) compared to the previous quarter to 91.4%, from lower occupancy rates in its Singapore (from 92.9% in 4Q FY2024/25 to 92.6% 1Q FY2025/26), as well as in its North American (from 88.2% in 4Q FY2024/25 to 88.0% in 1Q FY2025/26) portfolios. Its Japan portfolio continue to have an occupancy rate of 100%.
Particularly, I’ve noted that the occupancy rates of its North American portfolio have been on a slow downward decline since 2Q FY2024/25 (ended 30 September 2024), as follows: 90.9% (2Q FY2024/25) -> 90.3% (3Q FY2024/25) -> 88.2% (4Q FY2024/25) -> 88.0% (1Q FY2025/26) – this is definitely something I will keep a close watch on in the coming quarters.
On the other hand, I understand that the REIT managed to record positive rental reversions for new and/or renewed leases for its Singapore and North America portfolio.
At the same time, lease expiries were also well-spread out over the years – with 10.1% of the leases due for renewal in the remaining 3 quarters of FY2025/26, an average of 17.2% of leases due for renewal each year over the next 3 financial years (between FY2026/27 and FY2028/29), with 38.3% of leases due for renewal only in FY2029/30 or later.
Debt Profile (4Q FY2024/25 vs. 1Q FY2025/26)
Besides having a very good portfolio occupancy profile, MIT also has a healthy debt profile – with its aggregate leverage maintained at 40% or under, as well as a relatively high percentage (above 75% over the quarters) of borrowings hedged at fixed rates (and this minimises the risk of fluctuating interest rates on the REIT’s distribution payout to unitholders).
Just like I have reviewed the REIT’s portfolio occupancy profile in the previous section, in the table below, you’ll also find a comparison of its debt profile reported for 1Q FY2025/26 against that reported in the previous quarter 3 months ago (i.e., 4Q FY2024/25) to find out if it has continued to remain healthy:
| 4Q FY2024/25 | 1Q FY2025/26 | |
| Aggregate Leverage (%) | 40.1% | 40.1% |
| Interest Coverage Ratio (times) | 4.3x | 3.9x |
| Average Cost of Debt (%) | 3.0% | 3.1% |
| Average Term to Debt Maturity (years) | 3.4 years | 3.2 years |
| % of Borrowings Hedged at Fixed Rates (%) | 78.1% | 79.7% |
Comparatively, MIT’s debt profile was little changed compared to the previous quarter.
However, MIT’s aggregate leverage is expected to fall to about 37% after the completion of divestment of 3 industrial properties in Singapore (at 2 International Business Park, 1 International Business Park, as well as 33 & 35 Marsiling Industrial Estate Road 3), roughly around the 3rd quarter of 2025.
Debt maturity is also well-spread out over the years – with 17% of borrowings due for refinancing in the remaining 3 quarters of the current financial year FY2025/26; between FY2026/27 and FY2028/29 (3 financial years), it has an average of 17% of borrowings due for refinancing each year, with the remaining 31% of borrowings due for refinancing only in FY2029/30 or later.
Distribution Payout to Unitholders (1Q FY2024/25 vs. 1Q FY2025/26)
The management of MIT pays out a distribution to the unitholders on a quarterly basis, making it a suitable option for income investors who prefer REITs with more frequent payout intervals.
Here’s the REIT’s distribution payout declared to unitholders for the current period under review (i.e., 1Q FY2025/26) compared to that declared a year ago:
| 1Q FY2024/25 | 1Q FY2025/26 | % Variance | |
| Distribution Per Unit (S$’cents) | 3.43 cents | 3.27 cents | -4.7% |
The decline in distribution per unit can be attributed to the absence of distribution of gain from the divestment of the Tanglin Halt sector, and one-off compensation.
If this was excluded, MIT’s distribution per unit would have been up by 2.8% year on year from 3.18 cents/unit in 1Q FY2024/25 to 3.27 cents/unit in 1Q FY2024/25.
If you are a unitholder of MIT, do take note of the following dates on its distribution payout:
Ex-Date: 04 August 2025
Record Date: 05 August 2025
Payout Date: 08 September 2025
CEO Ms Lily Ler’s Comments & Outlook (Extracted from the REIT’s Press Release)
“Amid the uncertain macroeconomic environment, MIT’s portfolio remains resilient and is underpinned by positive rental reversions for the Singapore Portfolio and higher revenue contributions from the Japan Portfolio. For the North American Portfolio, we remain focused on active asset management with efforts underway to backfill vacancies and explore alternative use.
We have made steady progress in rebalancing our portfolio through strategic divestments in North America and Singapore. These initiatives enhance our financial flexibility and allow us to rebalance the portfolio and redeploy capital into markets and assets that can provide sustainable growth. The data centre sector continues to be a key pillar of our growth as we look to benefit from surging demand driven by cloud computing, artificial intelligence and digital transformation. To this end, our expansion plan into Europe and Asia Pacific will be a key area of growth as we rebalance our portfolio for resilience.”
Closing Thoughts
Overall, it was a mixed set of results reported by the REIT in my opinion.
On the positives, its gross revenue and net property income managed to eke out a small improvement (by 0.3% and 0.8% on a year on year basis respectively). Additionally, its debt profile continue to remain in a healthy position (where its aggregate leverage ratio is expected to go down to about 37% following the completion of divestment of 3 properties in Singapore in the 3rd quarter of 2025).
On the other hand, the occupancy rate of its North American portfolio continue to decline (in fact, it has been on a downward slide since 2Q FY2024/25, where it was at 90.9%, to 88.0% in 1Q FY2025/26). Distribution per unit also fell by close to 5% year on year to 3.27 cents/unit, due to lower contribution from its joint venture from higher borrowing cost, along with the absence of distribution from divestment gains.
I understand that some readers are concerned about the weakness in its North American portfolio (understandably so, considering the properties contribute 44.2% towards the REIT’s total assets under management, with Singapore and Japan contributing 48.5% and 7.3% respectively). However, in my opinion, it’s not all bad, as rental reversion was still at a positive percentage for the current quarter under review. In terms of the occupancy of its properties, it’s something I’ll continue to monitor in the coming quarters.
This brings me to the end of my review of MIT’s latest financial results for 1Q FY2025/26. I hope you have found the information in this post useful. As always, do take note that all the opinions shared in this post are purely for educational purposes only, and they do not represent any buy or sell calls for the REIT’s units. Please do your own due diligence before you make 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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