Mapletree Industrial Trust (ME8U) Q4 25/26 earnings summary

Executive summary

• DPU for FY25/26 was 12.71 cents, down 6.3% year-over-year, reflecting lower income from divestments, non-renewals in North America, and FX headwinds, partially offset by growth in Japan and Singapore.

• Net property income for FY25/26 was S$500.4 million, down 5.9% year-over-year, mainly due to the absence of one-off divestment gains and lease non-renewals.

• Portfolio rebalancing continues, with S$550.6 million in divestments completed at a premium to book value and further divestments of S$500–600 million targeted.

• Focus remains on addressing North American portfolio challenges, re-leasing, and exploring acquisition opportunities in Japan and Europe.

• Stable operational performance supported by healthy occupancies and positive rental reversions in Singapore and Japan.

Financial highlights

• Gross revenue for FY25/26 was S$673.0 million, down 5.5% year-over-year; net property income declined 5.9% to S$500.4 million.

• DPU excluding divestment gains declined 3.2% year-over-year.

• Net asset value per unit declined 4.7% to S$1.63 as of 31 Mar 2026, impacted by revaluation loss, weaker USD, and derivatives mark-to-market.

• Portfolio valuation decreased by S$827.0 million year-over-year to S$8.21 billion, mainly from divestments and FX effects.

• Borrowing costs decreased 19.4% year-over-year to S$84.8 million due to loan repayments and lower floating rates.

Outlook and guidance

• Challenging operating environment expected due to global uncertainties, higher borrowing costs, and confirmed non-renewals in North America.

• Further divestments of S$500–600 million planned, focusing on vacant or soon-to-be-vacant assets in North America.

• Acquisition focus on data centers in Japan and Europe to enhance geographic diversification.

• Borrowing costs expected to rise to 3.4–3.5% in FY26/27 as S$600 million of interest rate swaps mature.

• Singapore portfolio expected to maintain mid-single digit positive rental revisions.