On 28 July 2025, Mapletree Industrial Trust (“MIT”) have announced their first quarter results for FY2026. The metrics remain relatively unchanged, though DPU saw a decrease this quarter due to the absence of divestment gains and one-off compensation. Management has disclosed that excluding these adjustments, DPU from operations saw an increase when compared to the previous quarter. This can be seen from the increase in net property income and decrease in borrowing costs this quarter, which overall suggests underlying earnings strength.
Do note that the above does not include the financial performance of the joint venture. MIT’s joint venture is located in North America, where interest rates have continued to remain relatively high as compared to the rest of the world. This has continued to affect the results of the joint venture, as seen by the decrease in cash distribution declared by joint venture during the quarter.
As of the date of this article, the proposed divestment of three industrial properties as announcement by management on 16 May 2025 is not yet completed. It is expected to be completed in the third quarter of 2025, and management has disclosed their intention to use the net proceeds to repay debt in the interim, before eventual redeployment towards future investments.
This indicates management intention to use the capital to improve the fundamentals of MIT, instead of distributing it to investors to improve DPU for the short term. Investors will need to assess their risk appetites and if such actions will be accretive to unitholders.
Disclaimer: Not financial advice. All data and information provided on this site is for informational purposes only.
Website: Financial Statements And Related Announcement::First Quarter Results
Photo source: https://fifthperson.com/2021-mapletree-industrial-trust-agm/
Financial Highlights
Distribution Per Unit (“DPU”)
| Metrics | Current | Previous |
|---|---|---|
| Distribution Per Unit | -2.7% | -1.5% |
| Rating | Unfavorable | Unfavorable |
DPU for the quarter ending 30 June 2025 has decreased by 2.7% to SGD0.0327 per unit compared to SGD0.0336 per unit in the previous quarter. This metric remains Unfavorable.
The decrease in DPU was mainly due to the absence of divestment gains and one-off compensations that were noted in the previous quarter. Management have disclosed that excluding these adjustments, DPU increased by 2.8% during the quarter.
For this quarter, MIT has seen an increase in net property income and decrease in borrowing costs. These contributed favorably to DPU, offset by the decrease in cash distribution declared by joint venture.
Occupancy
| Metrics | Current | Previous |
|---|---|---|
| Occupancy | 91.4% | 91.6% |
| Rating | Unfavorable | Unfavorable |
Occupancy rate as of 30 June 2025 has decreased slightly to 91.4%. The decrease arose from further deterioration of the Singapore and North American portfolio. The metric remains Unfavorable.
Gearing ratio
| Metrics | Current | Previous |
|---|---|---|
| Gearing Ratio | 40.1% | 40.1% |
| Rating | Unfavorable | Unfavorable |
Gearing ratio as of 30 June 2025 remain unchanged at 40.1%. The metric remains Unfavorable. Noted that the total assets and debt have decreased this quarter.
Interest coverage
| Metrics | Current | Previous |
|---|---|---|
| Interest Coverage | 3.9x | 4.3x |
| Rating | Favorable | Favorable |
The adjusted interest coverage as of 30 June 2025 has decreased to 3.9 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 | 3.2 years |
| Rating | Favorable | Favorable |
Weighted average term to maturity of their debt as of 30 June 2025 remain unchanged at 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 34% of their debt will mature in FY26/27.
Price to Book Ratio
| Metrics | Current | Previous |
|---|---|---|
| Price to Book Ratio | 1.20 | 1.13 |
| Rating | Neutral | Neutral |
The Price to Book (“P/B”) ratio becomes more expensive at 1.20. This is computed using the closing share price of SGD2.02 on 1 August 2025 and the net asset value per share of SGD1.69 as of 30 June 2025. The metric remains Neutral, though the premium has become more significant.
As of 1 August 2025, the Market Capitalization is approximately SGD5,760 million.
Website: Yahoo Finance: Mapletree Industrial Trust (ME8U.SI)
Dividend
| Year | Yield | Total |
|---|---|---|
| 2025 | 4.97% | SGD 0.100 |
| 2024 | 6.69% | SGD 0.135 |
| 2023 | 6.65% | SGD 0.134 |
| 2022 | 6.85% | SGD 0.138 |
| 2021 | 6.63% | SGD 0.134 |
| 2020 | 6.03% | SGD 0.122 |
With a total distribution of SGD0.100 per unit in the year to date for 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 SGD2.02 as of 1 August 2025, this translates to a dividend yield of 6.69%. For my benchmark, a general reasonable yield would be around 4.75%. The dividend yield is Favorable.
Website: Reasonable Dividend Yield 2025Q3 – 4.75%
Should the required dividend yield increases to 6.75% as a benchmark, based on the dividend of SGD0.135, MIT may see its share price drop by 1.0% to SGD2.00.
| Yield | Share Price | Downside |
|---|---|---|
| Current | 2.02 | – |
| 6.75% | 2.00 | -1.0% |
| 7.75% | 1.74 | -13.8% |
Interest Rate Sensitivity
The Federal Reserve on 31 July 2025 have left its key short-term interest rate unchanged for the fifth time this year, at a range of 4.25% to 4.50%. Powell also signaled that it could take months for the Fed to determine whether Trump’s sweeping tariffs will push up inflation temporarily or lead to a more persistent bout of higher prices. His comments suggest that a rate cut in September, which had been expected by some economists and investors, is now less likely.
Website: Fed’s Powell sticks with patient approach to rate cuts, brushing off Trump’s demands
The Federal Reserve on 18 June 2025 have continued to keep interest rates unchanged at a range of 4.25% to 4.50%. The central bank’s latest outlook spells out a stagflation environment resulting from the import duties, with inflation heading higher even as overall growth trends lower.
Website: Federal Reserve leaves interest rates unchanged as it forecasts higher inflation
MIT have provided the interest rate sensitivity analysis as below. Should the interest rate change by 50 basis points, i will have a 0.11 cent per annum impact on DPU. Using the full year DPU for FY24/25 of 13.57 cents for reference, DPU is expected to change by 0.8%.
| Change in Interest Rates | Impact on DPU(cents) | Impact on DPU (%) |
|---|---|---|
| 50 bps | 0.11 | 0.8% |
| 100 bps | 0.22 | 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 | -2.7% | Unfavorable |
| Occupancy | 91.4% | Unfavorable |
| Gearing Ratio | 40.1% | Unfavorable |
| Interest Coverage | 3.9x | Favorable |
| Debt Maturity Profile | 3.2 years | Favorable |
| Price to Book Ratio | 1.20 | Neutral |
| Overall | Neutral |
The overall metrics indicate that it remains Neutral to invest in MIT. While the metrics remain relatively unchanged, management have disclosed improvements in operations, with improvements in DPU if exclude the divestment gains from the previous quarters. This may be a good step by management in the direction to focus on improving the fundamentals. Investors will need to monitor over if DPU from operations continue to increase over the next few quarters.
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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