On 23 April 2025, Mapletree Logistics Trust (“MLT”) have announced their full year result for FY2025. The results are not that ideal, with net property income continuing to decrease quarter on quarter. This was contributed by not only a decrease in revenue as a result of divestments, but also a notably inverse trend with higher overall property expenses this quarter, which was disclosed by management that it was due to higher property maintenance expenses.
One thing to note is that the portfolio rental reversions is positive for all markets except China, which has a negative rental reversion of 9.4%. China represents 17.0% of MLT gross revenue, and management expects this trend to continue. This may be further exacerbated as China is one of the key players in the rising trade tensions.
With 4 upcoming planned divestments but no accretive acquisitions announced, MLT may continue to see the DPU decrease over the next few quarters. Management has noted that with rising trade tensions and recession fears, this have heightened business uncertainty. In the long term, a protracted trade war would likely dampen economic activity, investment and consumption. Which in turn could further impact warehouse demand, occupancy and rental rates. This is something investors need to keep in mind when assessing their risk appetite.
Disclaimer: Not financial advice. All data and information provided on this site is for informational purposes only.
Website: Financial Statements And Related Announcement::Full Yearly Results
Financial Highlights
Distribution Per Unit (“DPU”)
| Metrics | Current | Previous |
|---|---|---|
| Distribution Per Unit | -2.4% | -1.2% |
| Rating | Unfavorable | Unfavorable |
For MLT, DPU disclosed are as follows:
- Fourth Quarter of FY2025: SGD0.01955 per unit
- Third Quarter of FY2025: SGD0.02003 per unit
- Second Quarter of FY2025: SGD0.02027 per unit
DPU for the fourth quarter of FY2025 has decreased by 2.4% to SGD0.01955 per unit from SGD0.02003 per unit for the previous quarter. The decrease was mainly in line with the decrease in net property income, contributed by a decrease in gross revenue and increase in property expenses. This metric remains Unfavorable.
Revenue has decreased due to lower contribution from China, and absence of revenue contribution from divested properties, which was partly offset by higher contribution from Australia. Property expenses increased in general due to higher property maintenance expenses, partly offset by absence of property expenses from divested properties.
Occupancy
| Metrics | Current | Previous |
|---|---|---|
| Occupancy | 96.2% | 96.3% |
| Rating | Favorable | Favorable |
Occupancy rate as of 31 March 2025 has remained relatively unchanged at 96.2%. This metric remains Favorable as it is above my expected healthy occupancy rate of 95%. MLT have been able to fully utilize their assets. With a healthy occupancy rate, this reaffirms that the DPU decrease was due to divestments and not any significant changes in the tenants.
Gearing ratio
| Metrics | Current | Previous |
|---|---|---|
| Gearing Ratio | 40.7% | 40.3% |
| Rating | Unfavorable | Unfavorable |
Gearing ratio as of 31 March 2025 has increased slightly to 40.7%. The metric remains Unfavorable. The increase in gearing ratio is attributed to the decrease in investment properties and total assets, with the total debt remaining relatively unchanged.
Interest coverage
| Metrics | Current | Previous |
|---|---|---|
| Interest Coverage | 2.9x | 2.9x |
| Rating | Neutral | Neutral |
The adjusted interest coverage as of 31 March 2025 remain unchanged at 2.9 times. The metric remains Neutral based on my benchmark of 3.0 times.
Debt maturity profile
| Metrics | Current | Previous |
|---|---|---|
| Debt Maturity Profile | 3.8 years | 3.5 years |
| Rating | Favorable | Favorable |
The debt maturity profile as of 31 March 2025 has lengthened to 3.8 years. This metric remains Favorable as it allows them sufficient time to refinance their debts when they fall due. Do note that 20% of their debt due to mature by the end of FY2027.
Price to Book Ratio
| Metrics | Current | Previous |
|---|---|---|
| Price to Book Ratio | 0.86 | 0.90 |
| Rating | Favorable | Favorable |
The Price to Book (“P/B”) ratio become cheaper at 0.86. This is computed using the closing share price of SGD1.13 on 25 April 2025 and the net asset value per share of SGD1.31 as of 31 March 2025. The metric remains Favorable as investors are paying a discount from its book value.
As of 25 April 2025, the Market Capitalization is approximately SGD5,725 million.
Website: Yahoo Finance: Mapletree Logistics Trust (M44U.SI)
Dividend
| Year | Yield | Total |
|---|---|---|
| 2025 | 3.50% | SGD 0.040 |
| 2024 | 7.57% | SGD 0.086 |
| 2023 | 7.99% | SGD 0.090 |
| 2022 | 6.64% | SGD 0.075 |
| 2021 | 8.31% | SGD 0.094 |
| 2020 | 7.20% | SGD 0.081 |
The dividend payout is approximately SGD0.020 per unit for each of the first two quarters of the calendar year 2025. This is aligned with my previous estimate, when annualized will amount to SGD0.080 per unit for the calendar year 2025. This will be lower than the payout in the calendar year 2024.
Using the closing share price of SGD1.13 as of 25 April 2025, this translates to a dividend yield of 7.08%. For my benchmark, a general reasonable yield would be around 5.25%. MLT’s dividend yield is above my benchmark and is Favorable.
Website: Reasonable Dividend Yield 2025Q2 – 5.25%
In the event that the required dividend yield increases to 7.25% as a benchmark, based on the dividend of SGD0.080 MLT may see its share price drop by 2.3% to SGD1.10.
| Yield | Share Price | Downside |
|---|---|---|
| Current | 1.13 | – |
| 7.25% | 1.10 | -2.3% |
| 8.25% | 0.97 | -14.2% |
Interest Rate Sensitivity
The Federal Reserve on 30 January 2025 have kept interest rates unchanged at a range of 4.25% to 4.50%. This is due to significant uncertainty in the U.S. economic landscape, with a healthy set of macroeconomic fundamentals that have changed little in recent months, but coming decisions from the Trump administration on immigration, tariffs, taxes and other areas that could prove disruptive.
Website: Fed leaves rates unchanged, sees no hurry to cut again
The Federal Reserve on 16 April 2025 said on Wednesday that they would wait for more data on the economy’s direction before changing interest rates but cautioned that President Donald Trump’s tariff policies risked pushing inflation and employment further from the central bank’s goals.
Website: Powell says Fed remains in wait-and-see mode; markets processing policy shifts
MLT have provided the interest rate sensitivity analysis as below. With a distributed income of SGD104 million for the fourth quarter of FY2025, should the interest rate change by 1.0%, distribution is expected to change by 1.2%.
| Change in Interest Rates | Impact on amount available for distribution per quarter (SGD’000) | Impact on DPU (%) |
|---|---|---|
| 50 bps | $1,400 | 1.3% |
| 100 bps | $2,800 | 2.7% |
Other metrics
Tenant profile
MLT has an enlarged portfolio covering multiple trade sectors. The high quality and diverse tenant base provide resilience to the MLT portfolio across challenging events. The top 10 tenants accounted for only 21.7% of MLT’s portfolio with no single tenant accounting for more than 3.7% during the period, providing income diversity to the portfolio.
Summary
| Metrics | Financials | Rating |
|---|---|---|
| Distribution Per Unit | -2.4% | Unfavorable |
| Occupancy | 96.2% | Favorable |
| Gearing Ratio | 40.7% | Unfavorable |
| Interest Coverage | 2.9x | Neutral |
| Debt Maturity Profile | 3.8 years | Favorable |
| Price to Book Ratio | 0.86 | Favorable |
| Overall | Neutral |
The overall metrics has remained Neutral this quarter. DPU continues to decrease quarter on quarter, which may continue as MLT is planning on further divestments but no upcoming acquisitions. Investors will need to monitor if the ongoing portfolio rejuvenation will be beneficial to the portfolio.
Background
MLT is Singapore’s first Asia-focused logistics real estate investment trust. Listed on the Singapore Exchange Securities Trading Limited in 2005, MLT invests in a diversified portfolio of quality, well-located, income producing logistics real estate in Singapore, Hong Kong SAR, Japan, China, Australia, South Korea, Malaysia, Vietnam and India.
The Manager, Mapletree Logistics Trust Management Ltd., is committed to providing Unitholders with competitive total returns through the following strategies:
- optimising organic growth and hence, property yield from the existing portfolio;
- making yield accretive acquisitions of good quality logistics properties; and
- managing capital to maintain MLT’s strong balance sheet and provide financial flexibility for growth.
Previous Post
Website: Mapletree Logistics Trust (SGX: M44U): 2025 Third Quarter Result
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