On 28 October 2025, Mapletree Logistics Trust (“MLT”) released their half year result for FY2026. MLT appears to have stabilized its key operating metrics this quarter, which should provide some reassurance to investors. However, it is important to note that portfolio-wide rental reversions, while still positive, continue to trend lower. The China segment remains in negative rental reversion territory, although the rate of decline has moderated compared with previous quarters.
Additionally, currency headwinds remain a significant drag on reported performance. Management highlighted that gross revenue and net property income would have shown quarter-on-quarter growth on a constant-currency basis, but these gains were effectively eroded when translated into Singapore dollars.
Disclaimer: Not financial advice. All data and information provided on this site is for informational purposes only. It does not take into account your individual needs, investment objectives and specific financial circumstances.
Website: Financial Statements And Related Announcement::Second Quarter And/Or Half Yearly Results
Financial Highlights
Distribution Per Unit (“DPU”)
| Metrics | Current | Previous |
|---|---|---|
| Distribution Per Unit | +0.2% | -7.3% |
| Rating | Neutral | Unfavorable |
For MLT, DPU disclosed are as follows:
- Second Quarter of FY2026: SGD0.01815 per unit
- First Quarter of FY2026: SGD0.01812 per unit
- Fourth Quarter of FY2025: SGD0.01955 per unit
- Third Quarter of FY2025: SGD0.02003 per unit
DPU for the second quarter of FY2026 remain relatively unchanged at SGD0.01815 per unit compared to SGD0.01812 per unit in the previous quarter. There were also no significant changes noted in the different components of their financial performance. This metric shifted towards Neutral.
Occupancy
| Metrics | Current | Previous |
|---|---|---|
| Occupancy | 96.1% | 95.7% |
| Rating | Favorable | Favorable |
Occupancy rate as of 30 September 2025 has increased to 96.1%. Management has disclosed that the increase this quarter was due to improvements across the portfolio, except for Japan which saw transitional downtime at Kuwana Centre. This metric remains Favorable as it is above my expected healthy occupancy rate of 95%.
Gearing Ratio
| Metrics | Current | Previous |
|---|---|---|
| Gearing Ratio | 41.1% | 41.2% |
| Rating | Unfavorable | Unfavorable |
Gearing ratio as of 30 September 2025 remain relatively unchanged at 41.1%. 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 September 2025 remain unchanged at 2.9 times. The metric remains Neutral as it is slightly below my benchmark of 3.0 times.
Debt Maturity Profile
| Metrics | Current | Previous |
|---|---|---|
| Debt Maturity Profile | 3.6 years | 3.6 years |
| Rating | Favorable | Favorable |
The debt maturity profile as of 30 September 2025 remain unchanged at 3.6 years. This metric remains Favorable as there is sufficient time to refinance their debt when they fall due. Do note that 16% of their debt due to mature by the end of FY2027.
Price to Book Ratio
| Metrics | Current | Previous |
|---|---|---|
| Price to Book Ratio | 1.05 | 0.98 |
| Rating | Neutral | Favorable |
The Price to Book (“P/B”) ratio become more expensive at 1.05. This is computed using the closing share price of SGD1.32 per unit on 2 December 2025 and the net asset value of SGD1.26 per unit as of 30 September 2025. The metric shifted towards Neutral as investors are paying a slight premium to its book value.
As of 2 December 2025, the Market Capitalization is approximately SGD6,735 million.
Website: Yahoo Finance: Mapletree Logistics Trust (M44U.SI)
Dividend
| Year | Yield | Total |
|---|---|---|
| 2025 | 5.75% | SGD 0.076 |
| 2024 | 6.48% | SGD 0.086 |
| 2023 | 6.84% | SGD 0.090 |
| 2022 | 5.69% | SGD 0.075 |
| 2021 | 7.11% | SGD 0.094 |
The total dividend payout for the calendar year 2025 amounted to SGD0.076 per unit as expected in the previous article. With a closing share price of SGD1.32 per unit as of 2 December 2025, this translates to a dividend yield of 5.75%. For my benchmark, a general reasonable yield would be around 4.25%. MLT’s dividend yield is above my benchmark and is Favorable.
Website: Reasonable Dividend Yield 2025Q4 – 4.25%
Should the required dividend yield increases to 6.25% as a benchmark, based on the dividend of SGD0.076 per unit MLT may see its share price drop by 7.9% to SGD1.22 per unit.
| Yield | Share Price | Downside |
|---|---|---|
| Current | 1.32 | – |
| 6.25% | 1.22 | -7.9% |
| 7.25% | 1.05 | -20.6% |
Interest Rate Sensitivity
The Federal Reserve on 29 October 2025 approved its second straight interest rate cut, though Chair Jerome Powell rattled markets when he threw doubt on whether another reduction is coming in December. This lowers the benchmark overnight borrowing rate to a range of 3.75% to 4.00%.
Website: Fed cuts rates again, but Powell raises doubts about easing at next meeting
MLT have disclosed that every potential +25 bps in interest rates on variable rate borrowings is estimated to reduce DPU by 0.10 Singapore cents per annum. With DPU of SGD0.01815 per unit for the second quarter of FY2026, the impact is illustrated as below:
| Change in Interest Rates | Impact on DPU (SG cents) | Impact on DPU (%) |
|---|---|---|
| 50 bps | 0.020 | 1.1% |
| 100 bps | 0.040 | 2.2% |
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 20.1% of MLT’s portfolio with the top tenant accounting for 3.7% during the period, providing income diversity to the portfolio.
Summary
| Metrics | Financials | Rating |
|---|---|---|
| Distribution Per Unit | +0.2% | Neutral |
| Occupancy | 96.1% | Favorable |
| Gearing Ratio | 41.1% | Unfavorable |
| Interest Coverage | 2.9x | Neutral |
| Debt Maturity Profile | 3.6 years | Favorable |
| Price to Book Ratio | 1.05 | Neutral |
| Overall | Neutral |
Overall, MLT’s operating metrics remain Neutral, as the trust has successfully stabilized key performance indicators and prevented further deterioration. With occupancy holding steady and rental reversions staying positive, there is potential for these improvements to flow through to higher DPU in the coming quarters.
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.
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Website: Mapletree Logistics Trust (SGX: M44U): 2026 First Quarter Result
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