On 23 July 2025, Mapletree Logistics Trust (“MLT”) announced their first quarter result for FY2026. This quarter saw a notable decrease in DPU, given that there was no divestment gains distributed during the period. There were downtrends noted in a few metrics, especially as there continues to be negative impacts from foreign currency and interest rate risks. Management continues to have hedges in place to mitigate these risks.
Do note that the overall portfolio rental reversions had decreased this quarter as well, to 2.1% from 5.1% in the previous quarter. The decrease arose from Singapore, Japan and South Korea portfolios, mitigated by some improvements in the rental reversions from China. The China portfolio, however, is still in a negative territory. The downward pressure on revenue from these lease expiries remains a key consideration.
Subsequent to the result announcement, MLT announced the proposed divestments of MapleTree Logistics Centre (Yeoju) and 28 Bilston Drive, Barnawartha North, Victoria (Australia) on 30 July 2025 and 13 August 2025 respectively. Both divestments are part of the Manager’s efforts to rejuvenate its portfolio through selective divestments of assets that are no longer aligned with its strategy. The divestment of Mapletree Logistics Centre (Yeoju) was announced to be completed on 29 August 2025.
Disclaimer: Not financial advice. All data and information provided on this site is for informational purposes only.
Website: Financial Statements And Related Announcement::First Quarter Results
Website: Asset Acquisitions And Disposals::Proposed Divestment Of Mapletree Logistics Centre – Yeoju
Website: Asset Acquisitions And Disposals::Proposed Divestment Of A Property In Australia
Financial Highlights
Distribution Per Unit (“DPU”)
| Metrics | Current | Previous |
|---|---|---|
| Distribution Per Unit | -7.3% | -2.4% |
| Rating | Unfavorable | Unfavorable |
For MLT, DPU disclosed are as follows:
- First Quarter of FY2026: SGD0.01812 per unit
- 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 first quarter of FY2026 has decreased by 7.3% to SGD0.01812 per unit from SGD0.01955 per unit for the previous quarter. The significant change was due to the absence of divestment gains during the quarter, which management has disclosed if excluded from computation, quarter-on-quarter will see an increase in DPU by 0.5%. The quarter saw a slight increase in net property income, offset by the increase in borrowing costs. This metric remains Unfavorable.
Occupancy
| Metrics | Current | Previous |
|---|---|---|
| Occupancy | 95.7% | 96.2% |
| Rating | Favorable | Favorable |
Occupancy rate as of 30 June 2025 has decreased to 95.7%. Management has disclosed that the notable decrease was due to the completion of Mapletree Joo Koon Logistics Hub (“MJKLH”) in May 2025 with occupancy of 42.4% as of 30 Jun 2025. Excluding MJKLH, Singapore’s occupancy rose 0.5 ppt to 96.4%, and MLT’s portfolio occupancy would be 96.3%. This metric remains Favorable as it is above my expected healthy occupancy rate of 95%.
Gearing Ratio
| Metrics | Current | Previous |
|---|---|---|
| Gearing Ratio | 41.2% | 40.7% |
| Rating | Unfavorable | Unfavorable |
Gearing ratio as of 30 June 2025 has increased to 41.2%. Management has disclosed that the increase was mainly due to foreign currency impact from the weakening of regional currencies on overall portfolio asset value. The metric remains Unfavorable.
Interest Coverage
| Metrics | Current | Previous |
|---|---|---|
| Interest Coverage | 2.9x | 2.9x |
| Rating | Neutral | Neutral |
The adjusted interest coverage as of 30 June 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 | 3.6 years | 3.8 years |
| Rating | Favorable | Favorable |
The debt maturity profile as of 30 June 2025 has shortened to 3.6 years. This metric remains Favorable as there is sufficient time to refinance their debts when they fall due. Do note that 19% of their debt due to mature by the end of FY2027.
Price to Book Ratio
| Metrics | Current | Previous |
|---|---|---|
| Price to Book Ratio | 0.98 | 0.86 |
| Rating | Favorable | Favorable |
The Price to Book (“P/B”) ratio become more expensive at 0.98. This is computed using the closing share price of SGD1.23 on 5 September 2025 and the net asset value per share of SGD1.26 as of 30 June 2025. The metric remains Favorable as investors are paying a discount from its book value.
As of 5 September 2025, the Market Capitalization is approximately SGD6,266 million.
Website: Yahoo Finance: Mapletree Logistics Trust (M44U.SI)
Dividend
| Year | Yield | Total |
|---|---|---|
| 2025 | 4.69% | SGD 0.058 |
| 2024 | 6.96% | SGD 0.086 |
| 2023 | 7.34% | SGD 0.090 |
| 2022 | 6.10% | SGD 0.075 |
| 2021 | 7.63% | SGD 0.094 |
| 2020 | 6.61% | SGD 0.081 |
The dividend payout in September 2025 of SGD0.018 per unit is lower than first two quarters of the calendar year 2025. Assuming the dividend payout in the last quarter remains unchanged, the expected total dividend payout for the calendar year 2025 will amount it SGD0.076 per unit.
Using the closing share price of SGD1.23 as of 5 September 2025, this translates to a dividend yield of 6.18%. For my benchmark, a general reasonable yield would be around 4.75%. MLT’s dividend yield is above my benchmark and is Favorable.
Website: Reasonable Dividend Yield 2025Q3 – 4.75%
In the event that the required dividend yield increases to 6.75% as a benchmark, based on the dividend of SGD0.076 per unit MLT may see its share price drop by 8.5% to SGD1.13.
| Yield | Share Price | Downside |
|---|---|---|
| Current | 1.23 | – |
| 6.75% | 1.13 | -8.5% |
| 7.75% | 0.98 | -20.3% |
Interest Rate Sensitivity
The Federal Reserve Chair Jerome Powell on 22 August 2025 gave a tepid indication of possible interest rate cuts ahead as he noted a high level of uncertainty that is making the job difficult for monetary policymakers. While he noted that the labor market remains in good shape and the economy has shown “resilience,” he said downside dangers are rising. At the same time, he said tariffs are causing risks that inflation could rise again — a stagflation scenario that the Federal Reserve needs to avoid.
Website: Powell indicates conditions ‘may warrant’ interest rate cuts as Fed proceeds ‘carefully’
The Federal Reserve on 31 July 2025 have left its key short-term interest rate unchanged for the fifth time this year, at a range of 4.25% to 4.50%. Powell also signaled that it could take months for the Fed to determine whether Trump’s sweeping tariffs will push up inflation temporarily or lead to a more persistent bout of higher prices. His comments suggest that a rate cut in September, which had been expected by some economists and investors, is now less likely.
Website: Fed’s Powell sticks with patient approach to rate cuts, brushing off Trump’s demands
MLT have provided the interest rate sensitivity analysis as below. With a distributed income of SGD91 million for the first quarter of FY2026, should the interest rate change by 1.0%, distribution is expected to change by 1.3%.
| Change in Interest Rates | Impact on amount available for distribution per quarter (SGD’000) | Impact on DPU (%) |
|---|---|---|
| 50 bps | $1,200 | 1.3% |
| 100 bps | $2,400 | 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 20.3% 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 | -7.3% | Unfavorable |
| Occupancy | 95.7% | Favorable |
| Gearing Ratio | 41.2% | Unfavorable |
| Interest Coverage | 2.9x | Neutral |
| Debt Maturity Profile | 3.6 years | Favorable |
| Price to Book Ratio | 0.98 | Favorable |
| Overall | Neutral |
The overall metrics has remained Neutral this quarter. There is a possibility that Occupancy and Price to Book Ratio may shift from Favorable to Neutral over the next few quarters given their current trend. This may lower the overall metrics for MLT in the future.
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 Full Year Result
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