Mapletree Industrial Trust (MIT) posted S$88.8 million in amount available for distribution to unitholders for the quarter ended Jun 30, down 4.8 per cent year-on-year, as the absence of income from divested Singapore assets and lease non-renewals in North America offset higher contributions from new Singapore leases and the Osaka data centre.

Gross revenue slipped 7.7 per cent YoY to S$162.3 million, while distribution per unit (DPU) declined 4.9 per cent to 3.11 Singapore cents. Unitholders on record as at 5 p.m. on Jul 31 will receive the payout on Sep 7.

By distribution line-item, S$3.47 million was allocated to perpetual securities holders and S$88.79 million to unitholders. Borrowing costs fell 24.6 per cent to S$18.5 million after loans were pared with proceeds from last August’s three-property sale in Singapore and a perpetual securities issue.

Performance was weighed down by the August 2025 sale of three Singapore industrial properties, the non-renewal of leases at several North American assets and a weaker U.S. dollar and Japanese yen. These were partially offset by new leases at the Singapore portfolio and the completion of fitting-out works at the Osaka data centre in May 2025.

Portfolio occupancy eased to 90.7 per cent from 91.2 per cent the previous quarter, dragged by a vacated lease at 7337 Trade Street in San Diego and downsizing of a tenant in Atlanta. Nonetheless, positive rental reversions averaged 5.3 per cent in Singapore and 2.2 per cent in North America. Weighted average lease to expiry ticked up to 4.5 years after a new 10-year lease at Hawthorne Data Centre in California and a five-year extension at Sunnyvale.

The manager said it will continue targeted North American divestments of S$500 million to S$600 million to unlock capital for assets that can deliver sustainable growth. Approximately 73.3 per cent of borrowings are hedged, with aggregate leverage at 37.5 per cent after a S$300 million loan drawdown to refinance perpetual securities in May.

Chief executive officer Ler Lily noted that leasing progress, including backfilling the Hawthorne facility and extending the Sunnyvale lease, had strengthened portfolio resilience, but cautioned that recently confirmed non-renewals in North America and higher interest costs from repriced swaps will pressure near-term performance. She added that active lease management, cost containment and disciplined capital recycling remain priorities amid a softer global economic outlook.

Looking ahead, MIT expects its Singapore and Japan portfolios to underpin stability, while ongoing efforts to improve North American occupancies and execute planned divestments are aimed at enhancing financial flexibility and long-term returns.