Mapletree Industrial (MAPIF) Q2 2027 Earnings Report

The call presented a mixed outlook. Singapore operations, leasing execution, capital structure, hedging and strategic growth initiatives were positive, while lower NPI and DPU, weaker North American occupancy, reduced rents on new U.S. leases, higher borrowing costs, vacant assets and uncertainty around the timing and pricing of divestments remained material challenges. Management was proactive and confident in its plans, but near-term financial pressure and execution risks were clearly acknowledged.

Management expects average borrowing cost to increase to about 3.5% to 3.6% for FY '26-'27 and to about 3.94% level, below 4%, for FY '27-'28, or average about 3.6%, FY '27-'28, if identified properties are divested and loans are repaid; it is targeting $500 million to $600 million of divestments before the end of the FY, with a target of executing a good amount by the end of the FY and working in 31st March timeframe, while Singapore reversions are expected to remain in the mid-single digits for the next half of the year, Kallang Way is tracking confidently towards 75% by the end of the FY, and the North American data center portfolio has a run rate of about 2% to 3% of GRI from renewals; Alpharetta and San Jose leases include about a 9-month rent-free period and about a 3-month rent-free period, respectively, with low single-digit escalations and rents between 10% to 30% lower than previous existing leases.