On 30 April 2025, Mapletree Industrial Trust (“MIT”) have announced their full year results for FY2025. DPU has seen a decrease this quarter, likely contributed from the continued decrease in occupancy and increase in gearing ratio over the last few quarters. This has resulted in a notable number of metrics being unfavorable, and MIT has seen the share price decrease over the last few weeks.
Subsequent to the full year result announcement, management have announced the following significant investment updates. These are expected to have a notable impact to the overall portfolio, and investors should take these factors into consideration when assessing their risk appetite.
On 10 May 2025, MIT announced the completion of divestment of the Georgia Data Centre. Based on the presentation slides, the sale price amounted to USD11.8 million, representing a premium of 18.5% from the valuation of USD9.95 million as of 31 March 2025. Management has disclosed their intention to use the net proceeds to pare down debt and/or fund working capital requirements.
On 16 May 2025, MIT have announced their proposed divestment of three industrial properties in Singapore. The total sale price amounted to SGD535.3 million, representing a premium of 2.6% over the valuation of SGD521.5 million as of 31 March 2025. Management has disclosed their intention to use the net proceeds to repay debt in the interim, before eventual redeployment towards future investments. Do note that as the proceeds are intended to be used to repay debt, management has disclosed further that DPU is expected to see a decrease by 2.2%, from DPU of SGD0.1357 per unit pre-divestment to SGD0.1327 per unit post-divestment. This is expected to contribute positively to the overall portfolio occupancy, as noted that 2 of the properties have average occupancy for FY24/25 below the total portfolio average of 91.6%. The divestments are expected to be completed in the third quarter of 2025.
With a total asset under management of SGD9.1 billion as of 31 March 2025, the divestments represent approximately 5.9% of MIT total portfolio.
Disclaimer: Not financial advice. All data and information provided on this site is for informational purposes only.
Website: Financial Statements And Related Announcement::Full Yearly Results
Website: Asset Acquisitions And Disposals::Completion Of Divestment Of Georgia Data Centre
Photo source: https://fifthperson.com/2021-mapletree-industrial-trust-agm/
Financial Highlights
Distribution Per Unit (“DPU”)
| Metrics | Current | Previous |
|---|---|---|
| Distribution Per Unit | -1.5% | +1.2% |
| Rating | Unfavorable | Favorable |
DPU for the quarter ending 31 March 2025 has decreased by 1.5% to SGD0.0336 per unit compared to SGD0.0341 per unit in the previous quarter. This metric shifted towards Unfavorable. The decrease in DPU was due to decreases in net property income and distribution declared by joint venture.
Net property income decreased due to the non-renewal of leases, lower rental rates and higher property maintenance cost from North American Portfolio, partially offset by new leases and renewals across various Singapore property clusters and full quarter contribution of the mixed-use facility in Tokyo acquired in Oct 2024.
The lower distribution from the join venture was due to higher borrowing cost from repricing of matured interest rate swaps.
Occupancy
| Metrics | Current | Previous |
|---|---|---|
| Occupancy | 91.6% | 92.1% |
| Rating | Unfavorable | Unfavorable |
Occupancy rate as of 31 March 2025 has decreased further to 91.6%. The decrease mainly arose from further deterioration of the North American portfolio. The metric remains Unfavorable.
Gearing ratio
| Metrics | Current | Previous |
|---|---|---|
| Gearing Ratio | 40.1% | 39.8% |
| Rating | Unfavorable | Neutral |
Gearing ratio as of 31 March 2025 has increased slightly to 40.1%. The metric has shifted toward Unfavorable. Noted that the total debt remained relative unchanged between the quarters.
Interest coverage
| Metrics | Current | Previous |
|---|---|---|
| Interest Coverage | 4.3x | 4.3x |
| Rating | Favorable | Favorable |
The adjusted interest coverage as of 31 March 2025 remains unchanged at 4.3 times. This metric remains Favorable as the coverage ratio is above my preferred coverage of 3.0 times.
Debt maturity profile
| Metrics | Current | Previous |
|---|---|---|
| Debt Maturity Profile | 3.2 years | 3.1 years |
| Rating | Favorable | Favorable |
Weighted average term to maturity of their debt as of 31 March 2025 has lengthened slightly to 3.2 years. This metric remains Favorable as there is still sufficient time to refinance their debts as they fall due. Do note that approximately 38% of their debt will mature in FY26/27.
Price to Book Ratio
| Metrics | Current | Previous |
|---|---|---|
| Price to Book Ratio | 1.13 | 1.22 |
| Rating | Neutral | Neutral |
The Price to Book (“P/B”) ratio becomes cheaper at 1.13. This is computed using the closing share price of SGD1.93 on 30 May 2025 and the net asset value per share of SGD1.71 as of 31 March 2025. The metric remains Neutral, though it is now cheaper than before to buy MIT.
As of 30 May 2025, the Market Capitalization is approximately SGD5,504 million.
Website: Yahoo Finance: Mapletree Industrial Trust (ME8U.SI)
Dividend
| Year | Yield | Total |
|---|---|---|
| 2025 | 3.51% | SGD 0.068 |
| 2024 | 7.01% | SGD 0.135 |
| 2023 | 6.96% | SGD 0.134 |
| 2022 | 7.17% | SGD 0.138 |
| 2021 | 6.94% | SGD 0.134 |
| 2020 | 6.31% | SGD 0.122 |
With a total distribution of SGD0.068 per unit in the first half of the calendar year 2025, MIT is currently on track to have an expected total payout of SGD0.135 per share similar to the calendar year 2024. With a closing share price of SGD1.93 as of 30 May 2025, this translates to a dividend yield of 7.01%. For my benchmark, a general reasonable yield would be around 5.25%. The dividend yield is Favorable.
Website: Reasonable Dividend Yield 2025Q2 – 5.25%
Do note that the above estimations do not take into consideration the upcoming divestments.
Should the required dividend yield increases to 7.25% as a benchmark, based on the dividend of SGD0.135 MIT may see its share price drop by 3.5% to SGD1.86.
| Yield | Share Price | Downside |
|---|---|---|
| Current | 1.93 | – |
| 7.25% | 1.86 | -3.5% |
| 8.25% | 1.64 | -15.2% |
Interest Rate Sensitivity
The Federal Reserve on 8 May 2025 have kept interest rates unchanged at a range of 4.25% to 4.50%, despite pressure from Trump to lower borrowing costs. The US central bank has warned that President Donald Trump’s tariffs have created “so much uncertainty” that it is unsure what to do about interest rates. The chairman Jerome Powell said the economic fallout from Trump’s tariffs meant it was “not at all clear” what the bank should do next.
Website: Fed holds rates because of tariff ‘uncertainty’
MIT have provided the interest rate sensitivity analysis as below. Should the interest rate change by 1.0%, using distribution per quarter as a base, distribution is expected to change by 1.6%.
| Change in Interest Rates | Impact on amount available for distribution per quarter (SGD’000) | Impact on DPU (%) |
|---|---|---|
| 50 bps | $800 | 0.8% |
| 100 bps | $1,500 | 1.6% |
Other metrics
Tenant profile
MIT has an enlarged portfolio covering multiple trade sectors, with a well-diversified tenant profile of over 2,000 tenants and the top 10 customers as of 31 March 2025 accounted for 29.5% of MIT’s portfolio with no single tenant accounting for more than 6.0% during the period, providing income diversity to the portfolio.
Summary
| Metrics | Financials | Rating |
|---|---|---|
| Distribution Per Unit | -1.5% | Unfavorable |
| Occupancy | 91.6% | Unfavorable |
| Gearing Ratio | 40.1% | Unfavorable |
| Interest Coverage | 4.3x | Favorable |
| Debt Maturity Profile | 3.2 years | Favorable |
| Price to Book Ratio | 1.13 | Neutral |
| Overall | Neutral |
The overall metrics indicate that it remains Neutral to invest in MIT. With the continued worsening of occupancy rate and gearing ratio, it seems that it has resulted in a decrease in DPU. Investors will need to monitor over the next few quarters if there are any significant changes, as the management seems to be adjusting the portfolio.
Background
MIT is a real estate investment trust listed on the Main Board of Singapore Exchange. The principal activity of MIT and its subsidiaries (the “Group”) is to invest in income-producing real estate used primarily for industrial purposes in Singapore and as data centres worldwide beyond Singapore, as well as real estate-related assets, with the primary objective of achieving sustainable returns from rental income and long-term capital growth.
MIT’s property portfolio includes Data Centres (Singapore), Data Centres (North America), Hi-Tech Buildings, Business Park Buildings, Flatted Factories, Stack-up/Ramp-up Buildings and Light Industrial Buildings.
MIT’s property portfolio comprised properties in Singapore and North America (including data centres held through the joint venture with MIPL).
MIT’s distribution policy is to distribute at least 90.0% of its taxable income, comprising substantially rental income from the letting of its properties and related property services income after deduction of allowable expenses, as well as interest income from the periodic placement of cash surpluses in bank deposits.
MIT is managed by Mapletree Industrial Trust Management Ltd. and sponsored by Mapletree Investments Pte Ltd.
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