Mapletree Industrial Trust (ME8U) Q2 24/25 earnings summary

Executive summary

• Net property income for 2QFY24/25 rose 4.6% year-over-year to S$134.5 million, driven by Osaka Data Centre and new/renewal leases, partially offset by non-renewals and divestments.

• Distribution per unit (DPU) for 2QFY24/25 increased 1.5% year-over-year to 3.37 cents, with total distribution to unitholders up 1.9% to S$95.8 million.

• Portfolio occupancy improved from 91.9% to 92.9%, mainly due to new lease commencements and the Vanderbilt lease in North America.

• Completed acquisition of a freehold property in Tokyo for JPY14.5 billion, fully leased and offering future redevelopment potential.

• Distribution reinvestment plan retained S$16.6 million, supporting leverage management and loan reduction.

Financial highlights

• 2QFY24/25 gross revenue was S$181.4 million, up 4.2% year-over-year; net property income reached S$134.5 million, up 4.6%.

• 1HFY24/25 gross revenue was S$356.7 million, up 3.5% year-over-year; net property income was S$267.0 million, up 2.9%.

• DPU for 1HFY24/25 was 6.80 cents, up 1.3% year-over-year.

• Net asset value per unit as at 30 September 2024 was S$1.72, mainly due to derivative valuation and USD depreciation.

• Aggregate leverage stood at 39.1% as at 30 September 2024.

Outlook and guidance

• Operating environment remains challenging amid global uncertainties, with risks from trade tensions, inflation, and elevated costs.

• Focus remains on cost mitigation, tenant retention, and prudent capital management to maintain stable occupancy.

• Data centre demand in North America and Japan remains robust, with tight supply and strong pre-leasing activity.

• Interest rate at group level expected to be slightly below 3.3% by year-end.