Mapletree Industrial Trust (ME8U) Q1 24/25 earnings summary

Executive summary

• Gross revenue for 1QFY24/25 rose 2.7% year-over-year to S$175.3 million, driven by contributions from the Osaka Data Centre, new leases, and positive rental revisions, partially offset by non-renewals and divestments.

• Net property income increased 1.3% year-over-year to S$132.5 million, with higher operating expenses mainly from utilities and marketing.

• Distribution to Unitholders grew 3.7% year-over-year to S$97.3 million, with DPU up 1.2% to 3.43 cents.

• Portfolio occupancy improved quarter-on-quarter from 91.4% to 91.9%, with Osaka Data Centre at 100% occupancy and a long WALE of 18.4 years.

• Resumed distribution reinvestment plan to enhance financial flexibility.

Financial highlights

• Profit attributable to Unitholders for 1QFY24/25 was S$95.6 million, up 4.3% year-over-year.

• Amount available for distribution increased up to 9.0% year-over-year to S$100.3 million.

• Net asset value per unit was S$1.75 as of 30 June 2024, slightly down from S$1.76 at 31 March 2024.

• Aggregate leverage stood at 39.1% with interest coverage at 4.7 times.

• Total assets under management stood at S$9.0 billion as of 30 June 2024.

Outlook and guidance

• Global economic growth is projected at 2.6% in 2024, with risks from geopolitical tensions, inflation, and persistent high interest rates.

• Manager will focus on cost mitigation, tenant retention, prudent capital management, and selective divestments.

• Data centre demand remains robust in North America and Japan, with strong fundamentals and rental growth.