Mapletree Industrial Trust Q4 2025 Earnings Presentation Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Mervin Song - JPMorgan - Analyst : Yeah, good morning, congrats on the strong rental reversions and the very low borrowing costs. Just can we touch on a few properties where we show a decline in property values, in particular, Neil Armstrong Boulevard, McCrimmon Parkway, Hills and Dales Road, Governors Hill Drive and Beltway Parkway as well as Bowen Road. Can we just get an update in terms of, are there future vacancies for these properties, not necessary for FY26 but '27. Because if you look at the big drops in or drop in valuations for March '24, it kind of correlated to the vacancies that you touched on previously. And also second question I have is, any updates in terms of the properties at Rancho Cordova. I note that it seems that JLL is trying to sell one of the properties there and the occupancy for the property actually seem to drop to 42.5% from a much higher level. Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 02, 2025 / 1:30AM, MAPI.SI - Q4 2025 Mapletree Industrial Trust Earnings Presentation

Question: Mervin Song - JPMorgan - Analyst : So the five properties that I mentioned between 10% to 12% decline in property values, is that upcoming vacancies or lower rents? What's driving the drop in valuations?

Question: Mervin Song - JPMorgan - Analyst : For these particular properties, are they mainly is a drop in valuation really change in discount rate used by the new valuer or is this actual cash flows that impacted the reduce? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 02, 2025 / 1:30AM, MAPI.SI - Q4 2025 Mapletree Industrial Trust Earnings Presentation

Question: Mervin Song - JPMorgan - Analyst : So there is some risk of lower cash flows for some of these properties, not necessarily this year, but in the outer years.

Question: Mervin Song - JPMorgan - Analyst : Sure. The final question for me --

Question: Mervin Song - JPMorgan - Analyst : Yes. Just in terms of the --

Question: Mervin Song - JPMorgan - Analyst : Yeah, I know the valuers may be more conservative in actuality, which may not be a reality. But just trying to understand because the vacancies kind of correlated, the drop in valuation the year before, so we actually had six to nine months precursor to guidance.

Question: Mervin Song - JPMorgan - Analyst : Yeah. And how should we be thinking about distribution of prior divestment gains. We sold the one that Northwoods Parkway, which I presume that's a gain, how should we think about that?

Question: Mervin Song - JPMorgan - Analyst : Good luck with the backfilling.

Question: Derek Tan - DBS Vickers Securities Pte. Ltd - Analyst : Hi, morning. Can you hear me?

Question: Derek Tan - DBS Vickers Securities Pte. Ltd - Analyst : Just two questions from me, right. Firstly, I think, Lily, you mentioned about your rent reversionary outlook for this year. You guided for mid-single digit, right? I'm just wondering whether what's driving this more conservative number, just being conservative? Or are you actually seeing that compressing of the leasing spread going forward? Maybe you answer for this first, yes.

Question: Derek Tan - DBS Vickers Securities Pte. Ltd - Analyst : I see. Okay. But generally, it's still positive for this year is a good confidence you'll get there.

Question: Derek Tan - DBS Vickers Securities Pte. Ltd - Analyst : Okay. Got it. So my second question is on your asset recycling, right? I noticed that you have been selectively selling assets. So I'm just wondering given that in the US, it's quite diversified and you've got many properties that's maybe sub-$10 million. Are you actively looking to sell more prior to the lease coming up for renewal? Do you have a guidance on the quantum for us?

Question: Derek Tan - DBS Vickers Securities Pte. Ltd - Analyst : Okay. Good. How about Singapore? Is Singapore something you're looking at also?

Question: Derek Chang - Morgan Stanley - Analyst : Yeah. I just wanted to ask a couple of follow-up questions. First one would be on the guidance for non-renewals. Lily, you mentioned 1.7% come from renewing this financial year and the balance of 1.8%. Is the 1.7% Telepark in Singapore?

Question: Derek Chang - Morgan Stanley - Analyst : Yeah. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 02, 2025 / 1:30AM, MAPI.SI - Q4 2025 Mapletree Industrial Trust Earnings Presentation

Question: Derek Chang - Morgan Stanley - Analyst : Understood. So that 1.7% and 1.8% numbers that you mentioned really stem from the US portfolio?

Question: Derek Chang - Morgan Stanley - Analyst : Got it. Didn't catch the first part of the presentation. And, just on, you mentioned cost pressures, higher borrowing costs, higher operating costs. Do you counteract such effects? Will you be open to, I guess, increasing fees in units?

Question: Derek Chang - Morgan Stanley - Analyst : Okay. And what will be the all-in interest outlook for this FY?

Question: Derek Chang - Morgan Stanley - Analyst : Thank okay, got it. Thank you.

Question: Joy Wang - HSBC - Analyst : Okay, great. Thanks. Hey team. So first of all, can we just get an update on the US power study? And I think in your slides, you mentioned about redevelopment, are we referring to redevelopment in US or Singapore? Thank you.

Question: Joy Wang - HSBC - Analyst : I see. And just a follow-up on San Jose. I guess if you were to start a redevelopment, would you do on a spec or you will need to secure a tenant before you start development work?

Question: Joy Wang - HSBC - Analyst : So just to clarify, basically up to 7 megawatts, there is no payment required or no CapEx to required, right?

Question: Joy Wang - HSBC - Analyst : Cool. That's very clear. And then my second question is on, in terms of a tenant. I don't know if you've done sort of an assessment in terms of exposure to sort of export-related activities. And also in your view, what percentage of the tenants are a little bit on a more vulnerable side? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 02, 2025 / 1:30AM, MAPI.SI - Q4 2025 Mapletree Industrial Trust Earnings Presentation

Question: Brandon Lee - Citi - Analyst : Hey, morning. Can you hear me? Just want to talk on your reversion outlook, right? Just confirming that you are lowering down from high single digit to low to mid?

Question: Brandon Lee - Citi - Analyst : Single mid?

Question: Brandon Lee - Citi - Analyst : Okay. And are you open to sharing about the split by the different industrial segments as well as on the US side, what's the expectation because I realized that your gross signing rents have been coming down despite the very strong market over there?

Question: Brandon Lee - Citi - Analyst : Yeah. So basically, for US, you are still expecting low to mid-single-digit positive as well going forward. Is it correct? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 02, 2025 / 1:30AM, MAPI.SI - Q4 2025 Mapletree Industrial Trust Earnings Presentation

Question: Brandon Lee - Citi - Analyst : Sure. And just to follow on from the US data center portfolio, right? Out of this USD3.1 billion of portfolio that you have, can you sort of give us a rough sense like how much of this you do look at actively selling them? How much of it does have the potential for upgradable power and how much you think it's really sort of much more resilient than the rest. Yes, because as you already mentioned, right, there's a fair mix of a lot of things. So good to get a sense on where we should look at the viability of this portfolio in the short and medium term.

Question: Brandon Lee - Citi - Analyst : Sorry. I kind of missed that. Sorry, you were cut off. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 02, 2025 / 1:30AM, MAPI.SI - Q4 2025 Mapletree Industrial Trust Earnings Presentation

Question: Brandon Lee - Citi - Analyst : Got it. Okay. That's very helpful. And just one last question to add it, right? Sorry.

Question: Brandon Lee - Citi - Analyst : Can you also share a bit on your NPL margins for this portfolio, right? Because we have seen that coming down below 70% again this quarter. In the past, I think it was always been about 70 plus percent. So is 68% to 69% the kind of normalized number that we should be looking at?

Question: Brandon Lee - Citi - Analyst : It's very helpful. Thank you.

Question: Xuan Tan - Goldman Sachs - Analyst : Can I just check that 1.7% nonrenewal other than San Jose, which are the assets was included in this?

Question: Xuan Tan - Goldman Sachs - Analyst : Okay. Got it. Second question is on USD exposure and also debt, right? In terms of income hedging, how long is it for? And also given the difference in Sing and US borrowing cost, any thoughts about shifting the USD debt to see?

Question: Xuan Tan - Goldman Sachs - Analyst : Okay. I understand. Last question on the divestment of $500 million to $600 million. That's the total amount that you're looking at, right? Not what you're looking to achieve for FY26. Is that right?

Question: Xuan Tan - Goldman Sachs - Analyst : Is it achievable in the next financial year?

Question: Xuan Tan - Goldman Sachs - Analyst : Thank you.

Question: Jonathan Koh - UOB Kay Hian Pte Ltd - Analyst : Yeah, morning, and thank you for taking my question. First question relates to tariff. And you correctly pointed out that Reciprocal tariff in Singapore is a lot lower than regional countries potentially. So for the four asset classes that you have in Singapore Hi-Tech Business Park, Flatted Factories and Stack-up/Ramp-up, which segment will be positively affected, which segment will be negatively affected by reciprocal tariff? Second question relates to the very attractive rent for new leases for Hi-Tech at 337, Business Park new leases at 3.9. They look much higher than the existing leases. Could you give us some color on how those attractive rents were achieved? And can we infer or read that positively for the trend going forward for these two segments?

Question: Jonathan Koh - UOB Kay Hian Pte Ltd - Analyst : Yeah. Hi-Tech and Business Park, there would be less manufacturing. So would that be more resilient? And then Stack-up/Ramp-up will have more logistic trade-related activities, would that maybe be weaker? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 02, 2025 / 1:30AM, MAPI.SI - Q4 2025 Mapletree Industrial Trust Earnings Presentation

Question: Jonathan Koh - UOB Kay Hian Pte Ltd - Analyst : And on the new leases, sorry.

Question: Jonathan Koh - UOB Kay Hian Pte Ltd - Analyst : Okay. And could you give us the latest occupancy for Kallang Way, how much that has improved in the last quarter?

Question: Jonathan Koh - UOB Kay Hian Pte Ltd - Analyst : Thank you very much.