Mapletree Industrial Trust (MIT) reported a 7.8 per cent slide in net property income to S$122.8 million for the quarter ended 31 Dec 2025, as gross revenue fell 8.0 per cent year-on-year to S$163.1 million. The decline was attributed mainly to the loss of income from three Singapore assets divested in August 2025, softer contributions from the North American portfolio following lease non-renewals and a weaker US dollar.

The real estate investment trust declared a distribution per unit (DPU) of 3.17 Singapore cents, down 7.0 per cent from a year earlier. The distribution, amounting to S$90.5 million (-6.9 per cent YoY), will be paid on 12 Mar 2026, with the books closure set for 5 Feb 2026.

By geography, the Singapore portfolio’s average occupancy improved to 93.0 per cent from 92.6 per cent in the previous quarter, supported by positive rental reversions of 7.1 per cent across all segments. The Tokyo mixed-use facility acquired in October 2024 and the completion of the Osaka Data Centre’s final fitting-out phase in May 2025 helped offset some of the revenue shortfall. In North America, occupancy challenges persisted, though 217,062 sq ft of leases—about 3 per cent of the region’s net lettable area—were secured at a 3.1 per cent rental uplift, while a 13-year lease was signed for 2055 East Technology Circle in Tempe.

Higher property operating costs and an uptick in borrowing expenses also weighed on earnings. Average borrowing cost edged up to 3.1 per cent from 3.0 per cent in the preceding quarter as lower-priced interest-rate swaps matured. Aggregate leverage was steady at 37.2 per cent, with 91.4 per cent of distributable income over the next 12 months either denominated in Singapore dollars or hedged.

Looking ahead, MIT is pressing on with its plan to divest S$500 million to S$600 million of North American assets to rebalance the portfolio and free up capital for growth opportunities. The manager also flagged continued leasing efforts in the United States and Canada, cost containment measures and cautious capital management amid expectations of higher funding costs.

Chief executive officer Ler Lily noted that the Singapore and Japan portfolios remained a “stable base” for the trust, citing resilient occupancies and firm rental reversions. She added that near-term earnings could be affected by leasing downtime in North America and ongoing asset recycling, but maintained that these were necessary steps to “drive sustainable returns” over the longer term.

The manager said it would continue to monitor global economic headwinds, including rising trade barriers and higher operating costs, while tapping recent “AA-” international credit ratings from Japan’s JCR and R&I to maintain funding flexibility.