Mapletree Industrial Trust Q2 DPU down 5.6% on absence of divestment gains, lower occupancy
The trust also had reduced income following the divestment of three Singapore industrial properties in August 2025
[SINGAPORE] Mapletree Industrial Trust (MIT) reported a distribution per unit (DPU) of S$0.0318 for the second fiscal quarter ended Sep 30, 2025, down 5.6 per cent from S$0.0337 in the corresponding year-ago period.
The decline was mainly due to the absence of the distribution of net divestment gain from its Tanglin Halt Cluster, the trust’s manager said in a bourse filing on Wednesday (Oct 29).
It also noted a “stable operational performance” underpinned by positive weighted average rental reversion rate in its Singapore portfolio, and an increase in its overall portfolio’s weighted average lease to expiry.
Distribution to unitholders, at S$90.7 million, was 5.3 per cent lower than the corresponding quarter last year. This was primarily due to a lower cash distribution declared by MIT’s joint venture, Mapletree Rosewood Data Centre Trust, which was impacted by higher borrowing costs resulting from the repricing of matured interest rate swaps.
Revenue for Q2 also declined 6.2 per cent year on year to S$170.2 million, from S$181.4 million previously. Net property income fell 7.8 per cent to S$124 million from S$134.5 million.
These decreases mainly reflected reduced income from the portfolio divestment of three Singapore industrial properties in August 2025, said MIT’s manager. It was also attributed to lower contributions from the North American Portfolio, impacted by non-renewal of leases and the depreciation of the US dollar against the Singdollar.
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However, the decline was partially offset by higher contributions from the freehold mixed-use facility in Tokyo, acquired in October 2024, and the completion of the final phase of fitting-out works at the Osaka Data Centre in May 2025.
MIT’s portfolio occupancy stood at 91.3 per cent as at end-September, marginally lower than the previous quarter’s 91.4 per cent. Its Singapore portfolio, meanwhile, registered an average rental rate of S$2.27 per square foot per month with a weighted average rental reversion rate of about 6.2 per cent.
The net proceeds from the Singapore portfolio divestment in August were used to repay outstanding borrowings in the interim, said the manager. This resulted in a lower aggregate leverage ratio and increased debt headroom for MIT.
“Looking ahead, our priorities remain centred on improving occupancies and redeploying capital into assets and markets through strategic divestments and acquisitions to drive sustainable returns,” said Ler Lily, chief executive officer of MIT’s manager.
Unitholders can expect to receive their quarterly DPU on Dec 10.
Units of MIT closed up S$0.01 or 0.5 per cent at S$2.22 on Wednesday, before the announcement.
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