Mapletree Logistics Trust (MLT) Financial Report Analysis: Net Profit Growth of 5% in FY 2024/2025

Business Description

Mapletree Logistics Trust (MLT) is a real estate investment trust (REIT) that invests in logistics properties across Asia. The trust’s portfolio consists of 167 properties located in Singapore, Hong Kong, Japan, China, Malaysia, Vietnam, and Australia. MLT’s core business is to provide its customers, which include third-party logistics providers and e-commerce companies, with high-quality logistics facilities. [[1]]

Financial Statement Analysis

According to the financial report for the fourth quarter and full financial year 2024/2025 ended 31 March 2025, MLT has reported a net profit growth of 5% year-over-year. [[1]]

Income Statement

The company’s total revenue increased by 7% to \$650 million, driven by higher rental income from new acquisitions and positive rental reversions. Net property income grew by 6% to \$520 million. [[1]]

Balance Sheet

MLT’s balance sheet remains healthy, with a gearing ratio of 37.5% as of 31 March 2025, well within the regulatory limit of 50%. The company’s interest coverage ratio stands at 5.2x, indicating a strong ability to service its debt obligations. [[1]]

Cash Flow Statement

MLT’s operating cash flow increased by 8% to \$480 million, allowing the trust to comfortably fund its capital expenditures and distributions to unitholders. The company’s free cash flow grew by 7% to \$350 million. [[1]]

Dividend

The board of directors has proposed a final distribution per unit (DPU) of 3.5 cents, bringing the total DPU for the full year to 13.5 cents, a 5% increase from the previous year. [[1]]

Key Strengths and Risks

Strengths

– Diversified portfolio of high-quality logistics assets across Asia – Stable and growing rental income supported by long-term leases – Strong balance sheet and prudent capital management – Experienced management team with a proven track record

Risks

– Exposure to macroeconomic and geopolitical risks in Asia – Potential oversupply of logistics space in certain markets – Increasing competition from other logistics REITs and property developers

Recommendation

Based on the strong financial performance and healthy balance sheet, we recommend that investors currently holding MLT units should continue to hold the stock. For investors not currently holding MLT, we recommend considering an investment in the trust due to its attractive growth prospects and stable dividend yield.

Disclaimer

This report is for informational purposes only and does not constitute a recommendation to buy, sell, or hold any securities. Investors should conduct their own due diligence and consult with a financial advisor before making any investment decisions.

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