Mapletree Industrial Q2 FY26/27 slides: DPU falls 6.6% on US weakness

Mapletree Industrial Trust, a real estate investment trust (REIT) focused on industrial properties, reported a decline in its distribution per unit (DPU) for the second quarter of fiscal year 2026/27. The DPU fell 6.6% year-over-year to 2.97 Singapore cents, reflecting challenges faced by the company's US data center portfolio and rising borrowing costs.

Net property income also decreased 3.5% to S$119.8 million. Shares of Mapletree Industrial fell 2.79% to $1.74 following the results announcement, trading near the lower end of its 52-week range. The trust's asset base, which spans Singapore, North America, and Japan, faced pressure from lease non-renewals and the impact of maturing interest rate swaps.

Despite these headwinds, the trust maintained a strong financial position with a solid leverage ratio and healthy interest coverage. Management implemented hedging strategies to manage risks, but concerns remain about the expiration of interest rate hedges at higher rates. The trust aims to divest non-core properties while maintaining diversification and financial flexibility through a proactive asset management strategy.