Mapletree Industrial Trust (ME8U) Q1 26/27 earnings summary

Executive summary

• Gross revenue for 1QFY26/27 was S$162.3 million, down 7.7% year-over-year, mainly due to divestments, non-renewal of North American leases, and currency depreciation, partially offset by new leases and Osaka Data Centre completion.

• Net property income for 1QFY26/27 was S$122.3 million, down 8.5% year-over-year, reflecting lower revenue and property operating expenses.

• Distribution per unit (DPU) was 3.11 cents, a 4.9% decrease year-over-year and a 0.6% increase quarter-over-quarter.

• Portfolio achieved positive rental reversions: 2.2% in North America and 5.3% in Singapore, with healthy occupancies in Singapore and Japan.

• Completed divestment of Philadelphia Data Centre and redemption of S$300 million perpetual securities.

Financial highlights

• Net property income: S$122.3 million, down 8.5% year-over-year, but up 2.0% sequentially.

• Amount available for distribution to unitholders: S$88.8 million, down 4.8% year-over-year but up 0.7% quarter-over-quarter.

• Borrowing costs fell 24.6% year-over-year and 1.2% quarter-over-quarter.

• Earnings per unit (EPU): 3.06 cents, down from 3.46 cents year-over-year.

• Net asset value per unit: S$1.63, unchanged from the previous quarter.

Outlook and guidance

• Challenging operating environment due to global uncertainties, higher energy prices, inflationary pressures, and geopolitical risks.

• Non-renewal of leases in North America and higher borrowing costs from repricing of interest rate swaps expected to impact near-term performance.

• Targeted divestments of S$500–600 million in North America planned to enhance financial flexibility and redeploy capital.

• Singapore and Japan portfolios expected to underpin stability, supported by robust AI-related demand.

• Continued focus on active lease management, cost containment, and prudent capital management.