Mapletree Industrial Trust (ME8U) Q4 23/24 earnings summary

Executive summary

• FY23/24 revenue and net property income rose modestly, while DPU declined 1.0% on a larger unit base; occupancy softened across Singapore and North America.

• Portfolio rebalancing added a fully leased Osaka data centre and divested the Tanglin Halt Cluster; portfolio valuation increased 0.9% to S$8.80 billion.

• Priorities remain accretive investment, selective divestments, data-centre growth and balance-sheet flexibility amid economic, geopolitical and rate uncertainty.

Financial highlights

• Gross revenue was S$697.3m, up 1.8% YoY; net property income was S$521.0m, up 0.6% YoY.

• Distribution to Unitholders rose 2.7% to S$378.3m; amount available for distribution increased 5.0% to S$384.5m.

• FY23/24 DPU was 13.43 Singapore cents, down 1.0% YoY; 4Q DPU was 3.36 cents.

• Net profit was S$120.6m versus S$291.1m; the year included a S$210.8m net fair value loss on investment properties, versus S$110.6m a year earlier.

• Revenue gains from Osaka, Kallang Way and leasing were partly offset by non-renewals and a weaker US dollar; operating expenses rose 5.6% to S$176.3m.

Outlook and guidance

• Strategy targets accretive acquisitions and developments, selective divestments of non-core assets, and growth in data centres and high-specification industrial facilities.

• The right of first refusal for the Sponsor’s 50% MRODCT interest remains a potential investment opportunity; a strong balance sheet is intended to support growth.

• Knight Frank forecast 2024 Singapore rent growth of 3%–5% for multiple-user factories, 3%–4% for high-specification industrial space, 2%–3% for business parks and 2%–3% for stack-up factories.