Mapletree Industrial Trust Q2 2027 Earnings Recap

MIT’s shares fell 2.8% after results, a roughly flat reaction, as lower distribution and occupancy point to pressure in the near term. DPU declined 6.6% year on year, with the data center occupancy drop—especially in North America—standing out as a key concern.

Key Takeaways

• Q2 net property income fell 3.5% year on year to $119.8 million; DPU was $0.0297, down 6.6% year on year and 4.5% quarter on quarter.
• Portfolio occupancy slipped from 90.7% to 89.7%, driven by data centers, where occupancy fell from 85% to 82.1%; North American data center occupancy was 79.1% after the San Diego lease expiry.
• Management said post-quarter reletting at Alpharetta and leasing at San Jose should help improve North American occupancy. Singapore occupancy remained resilient, supported by 184 renewals and 65 new leases; Kallang Way was 72.4% committed, with a 75% target by fiscal year-end.
• Aggregate leverage was 37.7%, average borrowing cost 3.3%, and 91% of distributable income for the next 12 months was hedged or derived in Singapore dollars. Repricing maturing swaps could lift borrowing costs to 3.5%–3.6% in FY2026–27 and slightly below 4% in FY2027–28.