Listed on the Mainboard of the Singapore Exchange in July 2005, and later included as a constituent of Singapore’s benchmark Straits Times Index (STI) in December 2019, Mapletree Logistics Trust (SGX: M44U), or MLT for short, has an investment focus in logistics properties in the Asia Pacific region.
As of 30 September 2025, its portfolio comprises 175 properties in Singapore, Australia, China, Hong Kong, India, Japan, Malaysia, South Korea, and Vietnam, with a total assets under management of S$13.0 billion.
Since the release of its 1Q FY2025/26 results in late-July (you can read my review about it here), the REIT has completed 2 divestments – Mapletree Logistics Centre – Yeoju in South Korea, sold at 1.3% above its latest valuation of KRW 7.9 billion as at 31 March 2025 (completed in August), and 28 Bilston Drive, Barnawartha North, Victoria, Australia, sold at 7.1% above its latest valuation of AUD 56.0 million as at 31 March 2025 (completed in September). From my understanding in its press releases, proceeds from these divestments will enhance the REIT’s financial flexibility, enabling it to reinvest in high-specification, modern logistics assets with stronger growth potential.
Last evening (28 October), MLT released its results for the 2nd quarter, as well as for the 1st half of FY2025/26 ended 30 September, and in this post, you will find my review of its latest financial figures, portfolio occupancy and debt profile, along with its distribution payout to unitholders:
Financial Figures (2Q FY2024/25 vs. 2Q FY2025/26, and 1H FY2024/25 vs. 1H FY2025/26)
In recent quarters, MLT reported weaker sets of financial figures due to lower contributions from its properties in China, along with unfavourable forex (as a result of a strong Singapore Dollar, where its financial figures are denominated).
Let us have a look at its latest financial figures in the tables below (first for the 2nd quarter, and then for the 1st half of the financial year) to find out if these headwinds still persist:
2Q FY2024/25 vs. 2Q FY2025/26:
| 2Q FY2024/25 | 2Q FY2025/26 | % Variance | |
| Gross Revenue (S$’mil) | $183.3m | $177.5m | -3.2% |
| Property Operating Expenses (S$’mil) | $24.7m | $24.2m | -2.0% |
| Net Property Income (S$’mil) | $158.6m | $153.3m | -3.3% |
| Distributable Income to Unitholders (S$’mil) | $102.3m | $92.5m | -9.6% |
Weaker foreign currencies against the Singapore Dollar (to which its financial figures are denominated in), have continued to weigh down MLT’s financial performance.
In particular, the REIT’s gross revenue fell by 3.2% year on year to S$177.5 million, mainly due to a weaker Hong Kong Dollar, Chinese Yuan, Australian Dollar, South Korean Won, and Vietnamese Dong, absence of revenue contribution from divested properties, and lower contribution from existing properties in China and South Korea. This was partially offset by a full period contribution from the completed redevelopment of Mapletree Joo Koon Logistics Hub, along with higher contribution from existing properties in Singapore, Japan, and Hong Kong.
MLT’s property operating expenses saw a 2.0% year-on-year drop to S$24.2 million due to the effect from the depreciation of the various currencies against the Singapore Dollar, and the absence of property expenses from divested properties, partially offset by contribution from Mapletree Joo Koon Logistics Hub.
Finally, as a result of a lower net property income (which declined by 3.3% year on year to S$153.3 million), as well as the absence of divestment gains (of around S$6 million), the REIT’s distributable income to unitholders was down by 9.6% year on year to S$92.5 million.
1H FY2024/25 vs. 1H FY2025/26:
| 1H FY2024/25 | 1H FY2025/26 | % Variance | |
| Gross Revenue (S$’mil) | $365.0m | $354.9m | -2.8% |
| Property Operating Expenses (S$’mil) | $49.7m | $48.2m | -3.0% |
| Net Property Income (S$’mil) | $315.3m | $306.7m | -2.7% |
| Distributable Income to Unitholders (S$’mil) | $206.0m | $184.5m | -10.4% |
For the 1st half of FY2025/26, MLT’s financial performance was a weaker one, with its gross revenue and net property income down by 2.8% and 2.7% year on year to S$354.9 million and S$306.7 million respectively.
The decline can be attributed to a weaker Hong Kong Dollar, Chinese Yuan, Australian Dollar, South Korean Won, and Vietnamese Dong against the Singapore Dollar, absence of revenue contribution from divested properties, along with a weaker contribution from existing properties in China and South Korea. This was partially mitigated by full period contribution from acquisitions in Malaysia and Vietnam completed in 1Q FY2024/25, contribution from completed redevelopment of Mapletree Joo Koon Logistics Hub, together with higher contribution from existing properties in Singapore, Japan, Hong Kong, and Australia.
Distributable income to unitholders tumbled by 10.4% year on year to S$184.5 million from a lower net property income, and the absence of divestment gains (amounting to approximately S$11.8 million recorded a year ago).
Portfolio Occupancy Profile (1Q FY2025/26 vs. 2Q FY2025/26)
No doubt there’s some weakness seen the occupancy rate in MLT’s properties in China, but they still remain at above 90% (in fact, the occupancy rate of its properties in the country was at 93.0% in 1Q FY2025/26). The only thing is the negative rental reversions recorded in the past quarters, which weighs down the REIT’s financial performance to some extent.
Apart from that, the occupancy rates in MLT’s properties in the other geographical locations remained at a high of over 95%, along with positive rental reversions.
Let us have a look at MLT’s portfolio occupancy profile in the table below, where you’ll find a comparison of the statistics reported for the current quarter under review (i.e., 2Q FY2025/26 ended 30 September) against that reported in the previous quarter 3 months ago (i.e., 1Q FY2025/26 ended 30 June):
| 1Q FY2025/26 | 2Q FY2025/26 | |
| Portfolio Occupancy (%) | 95.7% | 96.1% |
| Portfolio WALE (by Net Lettable Area – years) | 2.7 years | 2.7 years |
| Rental Reversion (%) | +2.1% | +0.6% |
MLT’s portfolio occupancy inched up by 0.4 percentage points (pp) to 96.1% as a result of improvements of the occupancy rates of the properties in Singapore (up from 93.9% in 1Q FY2025/26 to 94.6% in 2Q FY2025/26), South Korea (up from 95.7% in 1Q FY2025/26 to 96.2% in 2Q FY2025/26), and Malaysia (up from 99.7% in 1Q FY2025/26 to 100.0% in 2Q FY2025/26). The only country which saw a decline in its occupancy rate was Japan (which dipped slightly from 99.4% in 1Q FY2025/26 to 97.5% in 2Q FY2025/26).
As far as rental reversions of the REIT’s properties are concerned, only China saw a negative rental reversion for the quarter (at -3.0%; however, this was an improvement from a negative rental reversion of -7.5% in 1Q FY2025/26), while all the other countries saw a positive rental reversion ranging from between +0.7% and +4.3%. On a portfolio basis, MLT’s rental reversion was at +0.6% including China, but +2.5% excluding it.
Lease expiries are well-spaced out over the next few years – with 16.6% of leases due for renewal in the 2nd half of FY2025/26, an average of 21.6% of leases due for renewal each year over the next 3 financial years (between FY2026/27 and FY2028/29), with the remaining 18.6% of leases only due for renewal in FY2029/30 or later.
Debt Profile (1Q FY2025/26 vs. 2Q FY2025/26)
As far as debt profile goes, MLT has a rather healthy one – with its aggregate leverage at around 40%, which is a good distance away from the regulatory limit of 50%.
Just like for its portfolio occupancy profile, in the table below, you’ll find a comparison of the REIT’s debt profile for the current quarter (i.e., 2Q FY2025/26) compared against the previous quarter (i.e., 1Q FY2025/26) in the table below:
| 1Q FY2025/26 | 2Q FY2025/26 | |
| Aggregate Leverage (%) | 41.2% | 41.1% |
| Interest Coverage Ratio (times) | 2.9x | 2.9x |
| Average Cost of Debt (%) | 2.7% | 2.6% |
| Average Term to Debt Maturity (years) | 3.6 years | 3.6 years |
| % of Borrowings Hedged at Fixed Rates (%) | 84.0% | 84.0% |
MLT’s debt profile was largely unchanged compared to the previous quarter.
The slight 0.1pp improvement in its aggregate leverage (to 41.1%) can be attributed to the repayment of loans using divestment proceeds and lower net translated foreign currency loans.
Additionally, as a result of declines in SORA and HIBOR, MLT’s average cost of debt also dipped by 0.1pp to 2.6%.
Finally, looking at its debt maturity ahead, its well-staggered out – with just 2% of borrowings due for refinancing in the 2nd half of FY2025/26, an average of 14.2% of borrowings due for refinancing each year over the next 5 financial years (between FY2026/27 and FY2030/31), with the remaining 14% of borrowings due for refinancing only in FY2031/32 or later.
Distribution Payout to Unitholders
MLT has a quarterly distribution payout policy, which is one of the aspects I like about the REIT as an income investor, for it provides me with a more regular stream of income.
However, its distribution payout in the recent quarters was impacted by lower contribution from its China properties, along with weaker forex. Unfortunately, for the current quarter under review (i.e., 2Q FY2025/26), this headwind once again lead to a weaker distribution payout to unitholders (this was on top of the absence of divestment gains, as well as a larger unit base) – where its payout of 1.815 cents/unit is a 10.5% year-on-year decline compared to 2.027 cents/unit declared a year ago (i.e., 2Q FY2024/25).
If you are a unitholder of the REIT, do take note of the following dates on its distribution payout:
Ex-Date: 04 November 2025
Record Date: 05 November 2025
Payout Date: 16 December 2025
Finally, for the first half of the year, inclusive of its distribution payout of 1.812 cents/unit in the 1st quarter, MLT’s distribution payout of 3.627 cents/unit for the 1st half of FY2025/26 is 11.4% lower compared to its payout of 4.095 cents/unit in the 1st half of FY2024/25.
CEO Ms Jean Kam’s Comments & Outlook (from the REIT’s Press Release)
“2Q FY25/26 results marked another quarter of resilient operational performance, with both NPI and DPU remaining stable on a sequential basis. Additionally, we leveraged favourable movements in short-term interest rates to reduce our borrowing costs for the quarter. In China, we are encouraged to see an uptick in occupancy to 94% while negative rental reversions continued to narrow.
Looking ahead, while economic uncertainties persist, they may also give rise to new opportunities. We remain focused on rejuvenating and future-proofing our portfolio, staying agile and ready to seize these opportunities as they emerge.”
Closing Thoughts
It was a rather mixed set of results reported by MLT in my opinion.
On the positives, I note that the occupancy rates of its China properties have improved (from 93.0% in 1Q FY2025/26 to 94.0% in 2Q FY2025/26). Even though rental reversions are still at a negative percentage (at -3.0%), but it has improved from a negative rental reversion of -7.5% recorded in the previous quarter. Another plus point to note was the slight improvement in its debt profile (particularly in its aggregate leverage, as well as in its average cost of debt).
On the negatives, currency headwinds (particularly a weaker Hong Kong Dollar, Chinese Yuan, Australian Dollar, South Korean Won, and Vietnamese Dong against the Singapore Dollar) have continued to weigh down on MLT’s financial results for both the 2nd quarter, as well as for the 1st half of FY2025/26. This, together with the absence of divestment gains and a larger unit base, have also contributed to a weaker distribution payout to unitholders.
Looking ahead, with countries (Hong Kong, China, Australia, South Korea, and Vietnam) having a weaker foreign currency against the Singapore Dollar collectively contributing close to 52% towards MLT’s gross revenue for 1H FY2025/26, I am of the opinion that, unless the situation improves, it is going to continue to weigh down on the REIT’s financial performance in the coming quarters.
This brings me to the end of my review of MLT’s latest results for the 2nd quarter, as well as for the 1st half of FY2025/26. Do note that all the opinions expressed in this post are purely mine which I’m sharing for educational purposes only. They do not represent any buy or sell calls for the REIT’s units. As always, please do your own due diligence before you make any investment decisions.
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Disclaimer: At the time of writing, I am a unitholder of Mapletree Logistics Trust.
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