There are a total of 3 REITs sponsored by Mapletree Investments Pte Ltd, and they are: Mapletree Industrial Trust, Mapletree Logistics Trust, and Mapletree Pan Asia Commercial Trust.

All 3 of them are also components of the benchmark Straits Times Index, where collectively, they have a weightage of about 2.9%.

As they have a financial year end every 31 March, this time round (for the period ended 30 June), they will be reporting their results for the 1st quarter – starting off with Mapletree Logistics Trust last evening (23 July), followed by Mapletree Industrial Trust next Monday (28 July) evening, and then Mapletree Pan Asia Commercial Trust 2 days later (on Wednesday, 30 July).

For those who are new, Mapletree Logistics Trust (SGX: M44U), or MLT, invests in logistics properties, with its focus in Asia. As of 30 June 2025 (i.e., 1Q FY2024/25), the REIT’s portfolio comprises 178 properties in Singapore, Australia, China, Hong Kong, India, Japan, Malaysia, South Korea, and Vietnam worth a total of S$13 billion.

In terms of which 3 countries contribute the most revenue towards the REIT’s gross revenue, as of the latest financial year ended 31 March 2025, it is as follows: Singapore (27.7%), Hong Kong (17%) and China (17%).

The REIT is currently faced with headwinds in its properties China (where rental reversions continue to be in negative percentages), as well as weaker currencies of the other countries against the Singapore dollar – both of them I’m closing monitoring whenever the REIT releases its quarterly reports.

Last week, the REIT announced the completion of the divestment of 2 properties – 31 Penjuru Lane in Singapore (on 15 July), as well as Subang 2 in Malaysia (on 17 July).

In this post, you’ll find my review of MLT’s latest 1Q FY2025/26 financial results in terms of its latest financial figures, portfolio occupancy and debt profile, as well as its distribution payout to unitholders:

Financial Figures (1Q FY2024/25 vs. 1Q FY2025/26)

1Q FY2024/251Q FY2025/26% Variance
Gross Revenue (S$’mil)$181.7m$177.4m-2.4%
Property Operating Expenses (S$’mil)$25.0m$24.0m-4.0%
Net Property Income (S$’mil)$156.7m$153.4m-2.1%
Distributable Income to Unitholders (S$’mil)$103.7m$92.0m-11.3%

Overall, it was a weaker set of results reported by MLT – with its gross revenue, net property income, and distributable income to unitholders all declined.

Gross revenue fell by 2.4% year on year to S$177.4 million due to lower contribution from the properties in China, absence of revenue contribution from divested properties, along with a weaker Chinese Yuan, Hong Kong Dollar, South Korean Won, Australian Dollar, and Vietnamese Dong against the Singapore Dollar. However, this was partially offset by a higher contribution from its properties in Singapore, Australia, and Hong Kong, along with a full-period contribution from the newly acquired properties in Malaysia and Vietnam completed in 1Q FY2024/25.

As the REIT’s property operating expenses decreased by a higher percentage (by 4.0% year on year, as a result of lower property-related taxes, lower loss allowance due to partial recovery from tenants, absence of property expenses from divested properties, and the effect from depreciation of various currencies against the Singapore Dollar) compared to its gross revenue (by 2.4% year on year), its net property income fell by 2.1% year on year to S$153.4 million.

Distributable income tumbled by 11.3% year on year to S$92 million due to a 2.3% increase in borrowing costs (mainly due to incremental borrowings to fund its acquisitions made in 1Q FY2024/25 and capital expenditures, interest incurred on loan drawn for Mapletree Joo Koon Logistics Hub, replacement hedges at higher cost and higher base rates for Japanese Yen-denominated loans), the absence of divestment gains, along with a larger unit base.

Portfolio Occupancy Profile (4Q FY2024/25 vs. 1Q FY2025/26)

Unlike its financial figures, which continued to be affected by the weaker performance in its China properties, and unfavourable foreign currency conversion, MLT’s portfolio occupancy profile has been very resilient – particularly, the occupancy rate has been maintained at a high level of above 95%. Rental reversions, if we exclude that of the China properties, are also in positive percentages.

In the table below, you will find a comparison of MLT’s latest portfolio occupancy profile reported for the current quarter under review (i.e., 1Q FY2025/26 ended 30 June 2025) against that reported in the previous quarter (i.e., 4Q FY2025/26 ended 31 March 2025) to find out if both its occupany rate and rental reversion have continued to remain at desirable levels:

4Q FY2024/251Q FY2025/26
Portfolio Occupancy (%)96.2%95.7%
Portfolio WALE (by Net Lettable Area – years)2.8 years2.7 years
Rental Reversion (%)+5.1%+2.1%

MLT’s portfolio occupancy saw a 0.5 percentage point (pp) decline to 95.7% from a dip in occupancy rate in its properties in all of the geographical locations except for Hong Kong (which improved from 97.7% in 4Q FY2024/25 to 98.0% in 1Q FY2025/26), Malaysia (which improved from 97.1% in 4Q FY2024/25 to 99.7% in 1Q FY2025/26), as well as Vietnam (from 97.8% in 4Q FY2024/25 to 100% in 1Q FY2025/26). The occupancy rates for its properties in Australia and India remains at 100%.

As for the occupancy rate of its properties in China, it fell by another 1.0pp from 94.0% in 4Q FY2024/25 to 93.0% in 1Q FY2025/26.

In terms of MLT’s rental reversions, if China is excluded, it would be at +2.8% (and speaking of which, its rental reversions saw a slight improvement from -9.4% in 4Q FY2024/25 to -7.5% in 1Q FY2025/26). Apart from China, rental escalations for all the other geographical locations were at positive percentages, ranging from +1.1% to +7.2%.

Finally, on lease expiries, it is quite well-spread out over the next few years – with 25.3% of leases due for renewal in the remaining 3 quarters of the current financial year 2025/26, 24.8% of leases due for renewal in FY2026/27, 20.4% of leases due for renewal in FY2027/28, with the remaining 29.5% of leases due for renewal in FY2028/29 or later.

Debt Profile (4Q FY2024/25 vs. 1Q FY2025/26)

By and large, MLT also has a very healthy debt profile, with its aggregate leverage maintained at a range of between 36.8% and 40.7% over the past 5 years. On top of that, in recent years, to counter the ill-effects of rising interest rates on the REIT’s bottom-line, the management have hedged more than 80% of its borrowings at fixed rates (and this percentage is one of the highest among the 40+ Singapore listed REITs).

In the table, you’ll find a comparison of MLT’s debt profile for 1Q FY2025/26 against the reported in the previous quarter 3 months ago (i.e., 4Q FY2024/25), as follows:

4Q FY2024/251Q FY2025/26
Aggregate Leverage (%)40.7%41.2%
Interest Coverage Ratio (times)2.9x2.9x
Average Cost of Debt (%)2.7%2.7%
Average Term to Debt Maturity (years)3.8 years3.6 years
% of Borrowings Hedged at Fixed Rates (%)81.0%84.0%

Apart from a 0.5pp increase in its aggregate leverage to 41.2% (mainly due to foreign currency impact from the weakening of regional currencies on overall portfolio asset value), all the other statistics remain stable.

Debt maturity is well-spread out – in the remaining 3 quarters of FY2025/26, it only has 6% of borrowings due for refinancing. Between the next 4 financial years (FY2026/27 – FY2029/30), it has an average of about 17.5% of borrowings due for refinancing each year, with the remaining 24% of borrowings due for refinancing only in FY2030/31 or later.

Distribution Payout to Unitholders (1Q FY2024/25 vs. 1Q FY2025/26)

As a unitholder of MLT, you will receive a distribution payout on a quarterly basis – hence making the REIT a good option for those who prefer to receive distribution payouts more regularly.

In the table below, you’ll find MLT’s distribution payout declared for 1Q FY2025/26 compared to that paid out a year ago:

1Q FY2024/251Q FY2025/26% Variance
Distribution Per Unit (S$’cents)2.068 cents1.812 cents-12.4%

MLT’s distribution per unit tumbled by 12.4% year on year to 1.812 cents mainly due to the absence of one-off divestment gains, and weaker regional currencies (against the Singapore Dollar).

For information, if divestment gains were excluded, then its distribution per unit would have fallen by 7.3% year on year – from 1.954 cents/unit in 1Q FY2024/25 to 1.812 cents/unit in 1Q FY2025/26.

If you are a unitholder of the REIT, do take note of the following dates on its distribution payout:

Ex-Date: 30 July 2025
Record Date: 31 July 2025
Payout Date: 10 September 2025

CEO Ms Jean Kam’s Comments & Outlook (Extracted from the REIT’s Press Release)

“On a sequential basis, our geographically diversified portfolio has sustained a resilient operational performance with both NPI and DPU from operations stable against 4Q FY24/25. Looking ahead, we are mindful that the ongoing trade tensions may reduce economic activities and demand for logistics space as the impact of tariffs start to be felt. We will remain vigilant and focused on maintaining portfolio stability, managing our costs and capital prudently, while leveraging our network effect to capture opportunities and continuing to build up resilience in the portfolio.”

Closing Thoughts

Just as I’ve expected, headwinds from its properties in China, along with a weaker forex continue to persist in the current quarter under review, led to the REIT reporting a weaker set of financial results.

The double-digit percentage decline in its distribution payout was also very much within my expectation considering the above.

As far as the occupancy rates of MLT’s properties are concerned, they are at 93.0% and above for all the geographical locations – which I must say is at a very strong level. However, the only slight negative here is that the occupancy rate of its China properties continue to slide compared to the previous quarter (from 94.0% in 4Q FY2024/25 to 93.0% in 1Q FY2025/26). On the other hand, while rental reversions for new and/or renewed leases for its China properties were still at negative percentages (at -7.5%), but it was a slight improvement compared to the negative percentage (of -9.4%) in the previous quarter (4Q FY024/25).

Finally, while MLT’s aggregate leverage inched up slightly (by 0.5pp) to 41.2%, but it’s still a pretty good distance to the regulatory limit of 50%, and its debt maturity over the next few years are well-staggered out.

This brings me to the end of my review of MLT’s latest results for 1Q FY2025/26. As always, I hope you’ve found the contents presented in this post useful. At at the same time, do take note that all opinions expressed above are purely mine which I’m sharing for educational purposes only, and not as any buy or sell recommendations for the REIT’s units. You are strongly encouraged to do your own due diligence before making any investment decisions.

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

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