Mapletree Industrial Trust (ME8U) Q3 25/26 earnings summary

Executive summary

• Gross revenue for 3QFY25/26 declined 8.0% year-over-year to S$163.1 million, mainly due to divestments, non-renewal of leases in North America, and USD depreciation, partially offset by new contributions from Tokyo and Osaka data centres.

• Net property income for 3QFY25/26 was S$122.8 million, down 7.8% year-over-year, reflecting lower revenue and reduced property expenses post-divestment.

• Distribution per unit (DPU) for 3QFY25/26 was 3.17 cents, a 7.0% decrease year-over-year and 0.3% lower quarter-on-quarter; YTD DPU was 9.62 cents, 5.8% lower year-over-year.

• Portfolio occupancy improved to 91.4%, with strong rental reversions in Singapore and long-term leases secured in North America.

• Major portfolio changes included the completion of Osaka Data Centre, divestment of Georgia Data Centre in the US, and sale of three Singapore industrial properties for S$535.3 million.

Financial highlights

• Gross revenue for 3QFY25/26 was S$163.1 million (down 8.0% year-over-year); YTD: S$509.2 million (down 4.6%).

• Net property income for the quarter was S$122.8 million (down 7.8% year-over-year); YTD: S$380.5 million (down 4.9%).

• Distribution to unitholders was S$90.5 million, down 6.9% year-over-year.

• Borrowing costs decreased 23.7% year-over-year due to repayment with divestment proceeds and lower interest on floating rate loans.

• DPU excluding divestment gains declined 3.9% year-over-year.

Outlook and guidance

• Operating environment remains challenging amid global uncertainties, inflation, and rising tariffs; global growth projected to moderate in 2026.

• Borrowing costs are expected to rise as maturing interest rate swaps are repriced.

• Focus remains on active lease management, cost containment, and selective divestments to enhance financial flexibility.

• North American data centre demand is strong but constrained by power availability; Tokyo and Osaka markets see robust growth but face supply and construction delays.

• Singapore's GDP growth for 2026 is forecast at 1.0–3.0%, with manufacturing and trade-related sectors expected to slow.