On 26 July 2023, Mapletree Industrial Trust (“MIT”) have announced first quarter results for FY2024. MIT have shown that there have been deterioration of their fundamentals this quarter, which is not surprising given the current interest rate climate and it is consistent with other REITs across the board. MIT seems to have the sufficient financial resources to handle the increases for the next few years until interest rate starts to taper off.

Nonetheless, under my “Key things to note”, there is a need to consider the potential impact of a extended period of higher interest rate environment not just on MIT, but also their tenants. Combined with the continued decrease in occupancy, there may be further fundamental impact investors will need to assess their risk profile accordingly.

Background

MIT is a real estate investment trust listed on the