When Mapletree Logistics Trust (SGX: M44U), or MLT, was listed on the Singapore Exchange in 2005, it was Singapore’s first Asia Pacific-focused logistics REIT.

Back then, it only had 15 properties in its portfolio, all of them located in Singapore with a total value of S$422 million. Fast forward to the end of its latest financial year on 31 March 2025, its portfolio comprised 180 properties in 9 different geographical locations (47 in Singapore, 42 in China, 22 in Japan, 21 in South Korea, 14 in Australia, 12 in Vietnam, 10 in Malaysia, 9 in Hong Kong, and 3 in India) valued at a total of S$13.3 billion.

Some of the news updates since it released its 4th quarter and full year results back in April 2025 were the completion of divestment of 2 properties in Singapore – 1 Genting Lane (at a 35.2% premium to valuation) and 8 Tuas View Square (at a 39.8% premium to valuation).

This morning (20 June), MLT released its latest annual report for FY2024/25 ended 31 March 2025, and in this post, you’ll read about key highlights in this report (which I’ve compiled for the benefit of those who do not have time to go through it), along with details about its upcoming annual general meeting (AGM):

Key Highlights in MLT’s Annual Report FY2024/25

FY2024/25 Performance Highlights:

  • Gross revenue and net property income dipped by 0.9% and 1.5% year on year respectively to S$727 million and S$625.3 million, mainly due to lower contributions from China, the absence of income from divested properties, and the depreciation of several regional currencies (mainly the Japanese Yen, South Korean Won, Vietnamese Dong, Chinese Yuan, and Australian Dollar) against the Singapore Dollar. However, this was partially offset by stronger performances in its properties in Singapore, Australia, and Hong Kong, along with contributions from acquisitions completed during the year.
  • In terms of gross revenue contribution by each geographical location, it is as follows: Singapore (27.7%), Hong Kong (17%), China (17%), Japan (11.3%), South Korea (7.9%), Australia (7.3%), Malaysia (6.2%), Vietnam (4.5%), and India (1.1%).
  • MLT’s amount distributable to unitholders fell by 9.1% year on year to S$406.4 million due to lower net property income contribution from China, higher borrowing costs (which increased by 7.5% from the prior year), and lower divestment gains, with its distribution per unit tumbled by 10.6% year on year to 8.053 Singapore cents as a result of a larger unit base (which increased by 1.5% year on year).
  • Portfolio occupancy is at a high of 96.2%, with rental reversion at +2.1% (excluding China, MLT’s portfolio rental reversion was at +4.9%, reflecting positive rental reversions ranging from +1.3% in Korea to +27.9% in Australia). Top 10 customers contributed approximately 21.7% of total gross revenue, with no single customer accounting for more than 3.7%. MLT’s management diversifies risk through diversifying customer mix, and ensuring a high weighted average security deposit for the portfolio which stood at 3.1 months of rental income at the end of FY2024/25.
  • Portfolio valuation inched up slightly to S$13.3 billion (FY2023/24: S$13.2 billion), primarily due to the acquisition of 3 assets during the financial year under review, property under redevelopment in Singapore and capital expenditure on existing assets.
  • On capital management, aggregate leverage and average cost of debt inched up to 40.7% (FY2023/24: 38.9%) and 2.7% (FY2023/24: 2.5%) respectively. At the same time, its interest cover ratio edged down to 2.9x (FY2023/24: 3.1x). At an aggregate leverage of 40.7%, there remains a debt headroom of approximately S$2.6 billion before it reaches the regulatory limit of 50%, providing the REIT with substantial capacity to optimise its capital structure and pursue potential growth through acquisitions.

Updates on China:

  • Leasing market for warehouse space continued to be soft owing to subdued domestic consumption and rising trade tensions. Additionally, the supply of warehouse space has remained elevated, weighing down on occupancy and rental rates.
  • In view of this, MLT have adopted a pragmatic approach to leasing, accepting lower rents and shorter leases where it makes sense to maintain stable occupancy – this has resulted in the improvement of the occupancy rate of the REIT’s properties in the country to 94.0% as at 31 March 2025, compared to 93.2% a year ago; however, the average rental reversion for its China portfolio was at -11.4%, compared to -7.9% in the same time period last year.

MLT’s Portfolio Rejuvenation Efforts:

  • Acquisition of S$227 million of modern, Grade A assets in Vietnam (2) and Malaysia (1) strategically located in key logistics hubs near major cities from its Sponsor at slight discounts to valuations; this helped to strengthen MLT’s presence in 2 fast growing markets set to benefit from structural trends such as supply chain diversification and rising consumption.
  • Divestment of 10 properties with older specifications across Singapore, Malaysia, Japan, and China, along with another 4 divestments which are pending completion – with the total sales value at approximately S$209 million, with the capital released to be reinvested in modern, high-specification logistics facilities with stronger growth potential; the divestments are also executed at an average premium to valuation of 17%.
  • Asset enhancement works at 5A Joo Koon Circle (formerly known as 51 Benoi Road), with redevelopment project completed in May 2025 where its gross floor area (GFA) increased by 2.3 times – the property is currently 46% pre-leased, with another 30% of space under active negotiation.

Updates on MLT’s Sustainability Efforts:

  • During the financial year under review (i.e., FY2024/25), MLT achieved green certification for 23 properties across China, Malaysia, Singapore, and Vietnam, raising the proportion of green certified space to 56% of its total portfolio gross floor area – bring it closer to achieving 80% green certified GFA across its portfolio by 2030.
  • This is on top of 11 new solar projects being completed in the financial year, increasing its self-funded solar generating capacity by 31% year on year to 47.5 MWp. Including 3rd party funded solar systems on its assets, MLT’s total solar generating capacity has increased to 71.1 MWp (one of the largest among S-REITs reported to date), and moving closer towards achieving its target of 100 MWp of self-funded solar generating capacity by 2030.
  • Since implementing green leases for all new and renewed leases 2 years ago in its bid to gain tenants’ support in sustainability and data collection, green lease coverage has increased by 1% in FY2022/23 to 51% of its total portfolio lettable area in FY2024/25, substantially enhancing its ability to collect quality Scope 3 data.

Outlook Ahead:

  • Following the introduction of the US tariffs, the REIT management have not observed any significant lease terminations or space returns.
  • With approximately 85% of its revenue derived from tenants focused on local consumption, the management is of the belief that direct exposure to US-bound trade flows is limited. However, it is still early days and the potential second-order effects arising from broader demand softness remains difficult to assess.
  • The REIT’s management will closely monitor evolving trade policies under the Trump administration, particular the potential impact of US tariffs on global trade flows, supply chain dynamics, and broader logistics sector, alongside the Chinese government’s response to the US tariffs and its ongoing stimulus measures aimed at revitalising economic activity.
  • On currencies, the continued strength of the Singapore Dollar against regional currencies is expected to persist in the near-term and may continue to impact its financial results. This is in addition to rising borrowing costs putting pressure on MLT’s distributions, as maturing loans and hedges are refinanced at rates higher than existing levels.
  • Moving forward, the management will continue to adopt a prudent and disciplined approach to capital management in this period of heightened macroeconomic uncertainty – which includes retaining divestment gains to strengthen financial flexibility, enabling the management to seize accretive investment or asset enhancement opportunities that may arise.

Details of MLT’s 16th AGM

When? Monday, 21 July 2025
Where? 30 Pasir Panjang Road, Mapletree Business City, Town Hall – Auditorium, Singapore 117439
Time? 2.30pm

The AGM will be held in a wholly physical format, with no options for unitholders to attend virtually.

Unitholders whose units are held in the CDP account need not pre-register, as verification of unitholding will be conducted on the spot. However, for unitholders whose units are held in a custodian account, you will need to inform your brokerage to appoint you to attend the AGM as a proxy.

Closing Thoughts

Headwinds, including that from its China properties (which contributed 17% towards the REIT’s gross revenue), along with weaker foreign currency in the various countries to which the REIT has properties in, continue to weigh down on MLT’s full year financial performance. This is on top of the high interest expense impacting its distribution payout.

Looking at the financial year ahead, with uncertainties coming from trade tariffs, increasing geopolitical tensions, and persistently high interest rates, unfortunately, many of these headwinds are likely going to persist. I expect MLT’s results for the coming quarters to be similar to what was reported in the financial year that just passed (with a high-single to low-double digit decline in its financial results and distribution payouts).

Despite of that, in my opinion, MLT continues to be fundamentally sound, where they are rather well-diversified in terms of properties geographically, tenant concentration, and also in its portfolio occupancy of its properties (where it is maintained at a high 90% rate). In terms of its capital management, I note from its annual report that its all-in borrowing cost at 2.7% (as of 31 March 2025) is among the lowest in the S-REITs – however, I anticipate this cost to gradually rise in the coming quarters, as the rates for its refinanced borrowings are higher than those of the maturing ones.

With that, I have come to the end of my summary of MLT’s latest annual report for FY2024/25. Do note that all the opinions expressed in this post are purely mine which I’m sharing for educational purposes only, and not meant as any buy or sell calls for the REIT’s units. You’re strongly encouraged to do your own due diligence prior to making any investment decisions.

Related Documents

Disclaimer: At the time of writing, I am a unitholder of Mapletree Logistics Trust.

Are You Worried about Not Having Enough Money for Retirement?

You're not alone. According to the OCBC Financial Wellness Index, only 62% of people in their 20s and 56% of people in their 30s are confident that they will have enough money to retire.

But there is still time to take action. One way to ensure that you have a comfortable retirement is to invest in real estate investment trusts (REITs).

In 'Building Your REIT-irement Portfolio' which I've authored, you will learn everything you need to know to build a successful REIT investment portfolio, including a list of 9 things to look at to determine whether a REIT is worthy of your investment, 1 simple method to help you maximise your returns from your REIT investment, 4 signs of 'red flags' to look out for and what you can do as a shareholder, and more!

Get Your Copy of building Your REIT-irement Portfolio Here

You can find out more about the book, and grab your copy (ebook or physical book) here...