- Mapletree Industrial Trust reported its 2QFY26 results which came in within our expectations. Gross revenue and net property income (NPI) dipped 6.2% and 7.8% y-o-y to S$170.2m and S$124.0m respectively. This was due to the loss of income from recent divestments and weaker performance from its North America portfolio.
2QFY26 DPU fell 5.6% y-o-y to 3.18 Singapore cents but met our expectations.
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- Excluding distributions from divestment gains in 2QFY25, Mapletree Industrial Trust's DPU would have declined by a smaller magnitude of 2.2%.
- For 1HFY26, Mapletree Industrial Trust's DPU slipped 5.1% y-o-y to 6.45 Singapore cents, or was -1.8% excluding distributions from divestment gains in 1HFY25. This formed 49.5% of our initial FY26 forecast.
Positive rental reversions from Singapore and North America, while occupancy held firm.
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- While there have been concerns over Mapletree Industrial Trust’s North America portfolio, it recorded positive rental reversions of 3% on a weighted average basis, and this ranged between 2% and 10%. Leases signed were generally long at five to 11 years.
- Overall portfolio occupancy stood at 91.3%, which was a tad lower than the preceding quarter’s 91.4%. Singapore and Japan maintained their respective occupancy rates of 92.6% and 100%, while occupancy in North America fell 0.2ppt q-o-q to 87.8%. There are still challenges ahead – 19.2% of Mapletree Industrial Trust’s leases by gross rental income will be expiring in FY27, of which ~5.5ppt is from North America. ~2.5ppt is from San Diego and currently occupied by AT&T Inc.
- There is no visibility as to whether AT&T will exercise their option to extend the lease by five months. Other possibilities include repurposing the property or divesting it.
Aggregate leverage ratio fell 2.8ppt to 37.3% due to divestments;
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