Mapletree Industrial Trust (ME8U) reported a 5.9 % year-on-year fall in net property income to 500.4 million Singapore dollars for the 12 months ended Mar, 31 2026. Gross revenue slipped 5.5 % to 673.0 million Singapore dollars while borrowing costs decreased 19.4 % to 84.8 million Singapore dollars.

The trust declared a full-year distribution to unitholders of 362.6 million Singapore dollars, down 6.1 % from the previous financial year, translating to a distribution per unit of 12.71 cents, 6.3 % lower year on year.

MIT attributed the weaker performance to the absence of one-off divestment gains booked in the prior year, income loss from the sale of three Singapore assets, non-renewal of leases in its North American portfolio and foreign-exchange headwinds.

During FY25/26 the REIT completed divestments worth 550.6 million Singapore dollars, including two Singapore business park buildings, one Hi-Tech Building and a data centre in Georgia, at premiums to their respective book values. It intends to undertake additional North American disposals of 500 million to 600 million Singapore dollars to recycle capital into higher-growth data centre assets in Asia-Pacific and Europe.

Aggregate leverage stood at 34.0 % as at Mar, 31 2026, but is expected to rise to about 37.5 % after funding the May 2026 redemption of existing perpetual securities. In Mar, 2026 the trust issued 300 million Singapore dollars of 3.25 % perpetual securities to partially refinance the upcoming redemption. Some 88.6 % of total debt is on fixed rates, with a weighted average debt tenor of 3.4 years.

Occupancy across the 136-property portfolio was 91.3 % at fiscal year-end. The Singapore assets recorded 92.9 % occupancy and delivered a 7.0 % positive rental reversion for FY25/26, while the North American data-centre portfolio saw a 3.0 % uplift on renewed leases.

Looking ahead, MIT cautioned that confirmed lease expiries in North America and higher funding costs could weigh on near-term performance. The manager will press on with active leasing, cost controls and selective asset sales, targeting a further 500 million to 600 million Singapore dollars of divestments in North America to bolster financial flexibility and support future data-centre acquisitions.