Brief Overview:

Mapletree Logistics Trust (SGX: M44U), or MLT, invests primarily in logistics properties and other real estate-related assets across the Asia-Pacific region.

As at 30 June 2026, its S$13.1 billion portfolio comprised 175 properties spanning Singapore, Australia, China, Hong Kong, India, Japan, Malaysia, South Korea and Vietnam.

Financial Figures (1Q FY2025/26 vs. 1Q FY2026/27):

	1Q FY2025/26	1Q FY2026/27	% Variance
Gross Revenue (S$’mil)	$177.4m	$178.9m	+0.8%
Property Operating Expenses (S$’mil)	$24.0m	$22.5m	-6.3%
Net Property Income (S$’mil)	$153.4m	$156.4m	+2.0%
Distributable Income to Unitholders (S$’mil)	$92.0m	$93.0m	+1.1%

At first glance, MLT’s latest set of results may appear rather muted. However, considering that its quarterly financial performance had been on a declining trend since 1Q FY2024/25 ended 30 June 2024, I would regard the latest numbers as an encouraging improvement. That said, I’ll be keeping a close watch on its financial performance in the coming quarters to see if this positive momentum can be sustained.

Gross revenue edged up by 0.8% year on year, supported by contributions from an acquisition in India completed in 4Q FY2025/26, a full quarter of contribution from the redeveloped Mapletree Joo Koon Logistics Hub, as well as stronger contributions from existing properties, particularly in Singapore and South Korea. These were partially offset by weaker contributions from China, the absence of income from divested properties, and the depreciation of the Japanese Yen, South Korean Won and Hong Kong Dollar against the Singapore Dollar.

Property operating expenses fell by 6.3% year on year, mainly due to the absence of expenses from divested properties, favourable currency movements and lower utility costs. This was partially offset by a full quarter of expenses from Mapletree Joo Koon Logistics Hub. As a result, net property income improved by 2.0% year on year.

Meanwhile, borrowing costs declined by 2.7% year on year, helped by lower base rates on unhedged Singapore Dollar borrowings and interest savings from loans repaid using divestment proceeds. Together with the improvement in net property income, this contributed to a 1.1% year-on-year increase in distributable income to unitholders.

Portfolio Occupancy Profile (4Q FY2025/26 vs. 1Q FY2026/27):

	4Q FY2025/26	1Q FY2026/27
Portfolio Occupancy (%)	96.9%	96.4%
Portfolio WALE (by Net Lettable Area – years)	2.5 years	2.5 years
Rental Reversion (%)	+3.3%	+0.9%

Overall portfolio occupancy dipped slightly by 0.5 percentage points (pp) to 96.4%. This was mainly due to lower occupancy rates across its properties in Singapore (down 0.6pp from 96.5% in 4Q FY2025/26 to 95.9% in 1Q FY2026/27), China (down 0.4pp from 94.2% to 93.8%), and Australia (down 4.7pp from 100% to 95.3%).

Despite the slight decline, occupancy rates across all of MLT’s geographical markets remain healthy, with each recording an occupancy rate of at least 93.8%.

In terms of rental reversions, MLT recorded a positive portfolio rental reversion of +0.9%, including China.

For those concerned about rental reversions for new and/or renewed leases in China, I’m encouraged to see that the situation has continued to improve. Since bottoming at -12.2% in 2Q FY2024/25 ended 30 September 2024, rental reversions have improved in every subsequent quarter, even though they remain in negative territory:

-12.2% (2Q FY2024/25) → -10.2% (3Q) → -9.4% (4Q) → -7.5% (1Q FY2025/26) → -3.0% (2Q) → -2.2% (3Q) → -2.0% (4Q) → -1.8% (1Q FY2026/27)

This continued narrowing in negative rental reversions is another positive development, and one I’ll be keeping an eye on in the coming quarters.

Finally, looking at its lease expiry profile, 26.9% of MLT’s leases are due for renewal over the remaining three quarters of FY2026/27, while another 29.1% are due in FY2027/28. The remaining 44.0% will only expire in FY2028/29 or later, providing the REIT with a relatively well-spread lease expiry profile.

Debt Profile (4Q FY2025/26 vs. 1Q FY2026/27):

	4Q FY2025/26	1Q FY2026/27
Aggregate Leverage (%)	40.6%	40.5%
Interest Coverage Ratio (times)	2.9x	2.9x
Average Cost of Debt (%)	2.6%	2.6%
Average Term to Debt Maturity (years)	3.6 years	3.5 years
% of Borrowings Hedged at Fixed Rates (%)	83.0%	82.0%

Compared to the previous quarter, MLT’s debt profile remained largely unchanged.

Its aggregate leverage stood at a healthy 40.5%. Additionally, 82.0% of its borrowings are on fixed rates, which provides the REIT with a good degree of protection against fluctuations in interest rates.

In terms of debt maturity, only 2% of MLT’s borrowings are due for refinancing over the remaining three quarters of FY2026/27. Between FY2027/28 and FY2031/32, an average of approximately 18% of its borrowings will come due for refinancing each financial year, with the remaining 7% only maturing in FY2032/33.

Overall, MLT’s debt maturity profile remains well spread out, with no significant refinancing concentration in any single financial year.

Distribution Payout to Unitholders:

MLT declares distributions to unitholders on a quarterly basis.

The table below compares the logistics REIT’s distribution payout for 1Q FY2026/27 with the corresponding amount declared a year earlier:

	1Q FY2025/26	1Q FY2026/27	% Variance
Distribution Per Unit (S$’cents)	1.812 cents	1.816 cents	+0.2%

The year-on-year improvement in MLT’s distribution payout for the current quarter was also a pleasant surprise, particularly as this marked its first year-on-year increase since 1Q FY2024/25.

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

Ex-Date: 04 August 2026
Record Date: 05 August 2026
Payout Date: 16 September 2026

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

“MLT delivered a positive start to FY26/27, supported by stable operating fundamentals and disciplined capital management despite an uncertain operating environment. Looking ahead, we remain mindful that persistent inflationary pressures and ongoing uncertainties could temper economic activity and soften demand for logistics space. In response, we continue to prioritise portfolio stability while progressing our rejuvenation and capital recycling initiatives. The recently announced divestments of two China properties to a RMB fund and another property in Singapore reflect our progress in executing this strategy, enhancing our financial flexibility and supporting long-term value creation for unitholders.”

Closing Thoughts:

This was certainly a set of results that investors, myself included, have been waiting quite some time for – a year-on-year improvement in both MLT’s financial performance and distribution payout to unitholders.

Its portfolio occupancy remains very strong, with properties across all its geographical markets recording occupancy rates of at least 93.8%.

As for the headwinds facing its China portfolio, particularly rental reversions, there have been encouraging signs of improvement. Rental reversion has steadily recovered from a low of -12.2% in 2Q FY2024/25 to just -1.8% in 1Q FY2026/27. Occupancy of its China properties also remains healthy at above 90%.

MLT’s debt profile also continues to be maintained at a healthy level. Its aggregate leverage stood at 40.5%, while its debt maturities remain well spread out. Additionally, 82.0% of its borrowings are on fixed rates, providing the REIT with a good degree of protection against adverse interest rate movements.

As an investor, I will continue to monitor MLT’s financial performance and distribution payout over the coming quarters to determine whether the latest improvements are merely a one-off or the beginning of a sustained recovery. If the latter proves to be the case, it could be a sign that the worst may well and truly be over for the REIT.

Results Posted by the Other Mapletree REITs:

Mapletree Industrial Trust (SGX: ME8U): 1Q FY2026/27 Results Review

Related Documents:

Press Release
Financial Statements
Presentation Slides

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

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