Core Viewpoint - Industrial real estate investment trusts (REITs) are favored by investors due to their resilient performance and exposure to growth trends like e-commerce and AI, with Mapletree Industrial Trust (MIT) and Mapletree Logistics Trust (MLT) being key players in this sector [1]. Mapletree Industrial Trust (MIT) - MIT has a portfolio valued at S$8.5 billion, focusing on industrial properties and data centers in Singapore and North America as of September 30, 2025 [2]. - For 2Q FY25/26, MIT's distribution per unit (DPU) decreased by 5.6% year-on-year to S$0.0318, attributed to exchange rate headwinds, reduced rental income, and property divestments [3]. - The overall occupancy rate for MIT is stable at 91.3%, with a positive rental reversion of 6.2% for its Singapore portfolio, which constitutes 45.2% of its total portfolio [4]. - MIT reported a lower leverage of 37.3% in 2Q FY25/26 compared to 40.1% in 1Q, with a cost of debt of 3.0% and 92.9% of its debt hedged or fixed [5]. Mapletree Logistics Trust (MLT) - MLT's portfolio is valued at S$13.0 billion, focusing on logistics assets across nine Asia-Pacific markets [6]. - In 2Q FY25/26, MLT's DPU fell by 10.5% year-on-year to S$0.01815 due to forex impacts and the absence of divestment gains [6]. - MLT's occupancy rate improved to 96.1%, up from 95.7% in the previous quarter, indicating strong demand for its assets, with a positive rental reversion of 0.6% [6]. - MLT has an aggregate leverage ratio of 41.1% and a cost of debt of 2.6%, with 84% of its borrowings hedged or fixed [7]. Comparative Analysis - MIT has a trailing twelve-month (TTM) yield of approximately 6.0%, while MLT has a TTM yield of about 5.6% [10]. - Both REITs are expected to maintain distribution growth due to their exposure to data centers and e-commerce, although they face risks from foreign exchange fluctuations [10]. - MIT is positioned for growth in AI and digitalization through its data centers, while MLT benefits from regional e-commerce growth through its logistics properties [12].

Financial Data and Key Metrics Changes - The company reported GAAP net income of approximately $10.6 million for Q3 2024, with diluted net income per share of $0.04 [5] - Distributable earnings were $28.2 million or $0.15 per share after tax, with a dividend of $0.10 per share declared [5][28] - Fee-related revenue increased by 3% from the previous quarter to $82.5 million, driven by inflows into workforce and affordable housing [25][26] Business Line Data and Key Metrics Changes - The company acquired $349 million in multifamily and workforce assets and $966 million in debt strategies during Q3 2024 [9][18] - The debt strategies vertical had its largest lending quarter in over two years, originating 15 loans totaling over $720 million [17] - Multifamily investments year-to-date totaled $784 million, with unlevered IRRs 23% better than pre-pandemic levels [19] Market Data and Key Metrics Changes - Real estate values have decreased by an average of 19% since the 2021 peak, but signs of stabilization are emerging [8][16] - The commercial property price index showed a 3% increase in 2024, indicating a potential recovery in real estate prices [16] - Absorption in multifamily exceeded deliveries, with 193,000 units absorbed compared to 163,000 delivered in Q3 [20][85] Company Strategy and Development Direction - The company plans to capitalize on investment opportunities in a buyer's market, focusing on sectors with secular tailwinds [8][9] - Investments in logistics and distribution capabilities are expected to drive future growth, with a focus on expanding institutional coverage [12][13] - The company is positioning itself for a cyclical recovery by reinvesting in its platform and expanding its investment strategies [28][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of the commercial real estate market, citing pent-up demand for transactions and improving debt markets [16][40] - The company anticipates significant improvements in valuation and transaction volumes in the coming quarters [17][19] - Management highlighted the importance of maintaining team morale and investing in talent to support future growth [67][72] Other Important Information - The company has opened an office in Dubai to enhance its Middle Eastern investor base and is expanding its presence in Europe and Asia [13] - The logistics value-add strategy has seen significant investment, with a strong team and local offices established in key markets [11][12] - The company expects to see a stabilization of reserve income to more normalized positive levels in the upcoming quarters [29] Q&A Session Summary Question: Outlook on real estate market recovery and fundraising - Management noted that while transaction flow may slow due to rate changes, there is significant pent-up demand for transactions and a loan maturity wall that will force activity [37][39] Question: Expected improvement in fundraising for Q4 - Management indicated that logistics and other strategies are expected to contribute positively to fundraising, with a potential increase in contributions from existing funds [64][65] Question: Impact of institutional inflows on transaction revenues - Management acknowledged that inflows from institutional investors typically result in lower management fee rates, affecting the overall revenue mix [92][93] Question: Trends in rent and NOI growth across sectors - Management reported a 3.3% quarter-over-quarter rent growth in multifamily workforce housing, with strong absorption rates expected to continue into 2025 [84][86]