Mapletree Logistics Trust: 3Q FY25/26 Financial Analysis and Investor Insights
Mapletree Logistics Trust (MLT) has released its financial results for the third quarter of FY25/26. This article provides a structured analysis of the key financial highlights, trends, and strategic developments impacting MLT’s performance. All data and insights are directly sourced from the company’s latest financial report.
Key Financial Metrics and Performance Overview
| Metric |
3Q FY25/26
(31 Dec 2025) |
2Q FY25/26
(30 Sep 2025) |
3Q FY24/25
(31 Dec 2024) |
YoY Change |
QoQ Change |
| Gross Revenue (S\$’000) |
176,829 |
177,471 |
182,413 |
-3.1% |
-0.4% |
| Net Property Income (S\$’000) |
151,993 |
153,308 |
157,201 |
-3.3% |
-0.9% |
| Amount Distributable to Unitholders (S\$’000) |
92,671 |
92,459 |
101,314 |
-8.5% |
+0.2% |
| Distribution Per Unit (DPU) (cents) |
1.816 |
1.815 |
2.003 |
-9.3% |
+0.1% |
| Portfolio Occupancy |
96.4% |
96.1% |
N/A |
N/A |
+0.3pp |
| Aggregate Leverage |
40.7% |
41.1% |
N/A |
N/A |
-0.4pp |
Dividend Distribution Details
| Distribution Period |
DPU (cents) |
Ex-Date |
Payment Date |
| 1 Oct 2025 – 31 Dec 2025 |
1.816 |
2 Feb 2026 |
18 Mar 2026 |
| 2Q FY25/26 |
1.815 |
N/A |
N/A |
| 3Q FY24/25 |
2.003 |
N/A |
N/A |
Performance Drivers and Strategic Developments
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Revenue and NPI: Both gross revenue and net property income (NPI) declined YoY (by 3.1% and 3.3% respectively). The declines were primarily due to foreign exchange headwinds (notably KRW, JPY, VND, HKD), the loss of income from divested assets, and lower contributions from China. These were partially offset by higher contributions from completed redevelopments and properties in Singapore, Japan, and Vietnam.
-
Distributable Income and DPU: Distributable income to unitholders was down 8.5% YoY. DPU fell 9.3% YoY but was stable QoQ, reflecting operational resilience despite macro pressures and the absence of divestment gains.
-
Occupancy and Leverage: Portfolio occupancy improved to 96.4%, driven by leasing gains in Singapore, Japan, and South Korea. Aggregate leverage declined slightly to 40.7%, primarily due to divestments and favorable currency movements.
Divestments and Portfolio Rejuvenation
MLT actively divested six properties YTD at an average premium of ~20% above valuation. These strategic disposals allow for capital recycling into modern assets with higher growth potential. Notable divestments include properties in Singapore, Malaysia, South Korea, and Australia. The trust is targeting S\$100–150 million in new divestments for FY25/26.
Sustainability Progress
-
MLT expanded self-funded solar capacity by 20% YoY to 57.3 MWp and increased green-certified space to 70% of portfolio GFA. The trust is on track to achieve its 2030 targets of 100 MWp solar capacity and over 80% green-certified space.
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Green and sustainable financing stood at S\$1.5 billion (~28% of total borrowings), and green leases accounted for 64% of the portfolio by NLA.
Macroeconomic and Operational Outlook
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The outlook for 2026 is modest economic expansion with persistent geopolitical and currency risks. MLT expects stable leasing demand and resilient operational performance, underpinned by the logistics sector’s structural tailwinds (e.g., e-commerce, supply chain diversification).
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Foreign currency volatility remains a key headwind for distributable income, although pressures on borrowing costs have stabilized.
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Management’s focus will be on maintaining high occupancy, rental stability, cost efficiency, and disciplined hedging, while seeking value-adding opportunities in asset enhancement, acquisitions, and divestments.
Conclusion and Investor Recommendations
Overall Assessment: MLT’s underlying operating performance remains resilient, with stable QoQ DPU and improved occupancy. However, YoY performance is weaker due to forex headwinds, divestments, and absence of one-off gains. The trust’s proactive capital management, prudent leverage, strong sustainability showing, and continued portfolio rejuvenation support a neutral to cautiously optimistic outlook.
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If You Are Currently Holding MLT: Maintain your position if you seek steady, though modest, income. The trust’s strong asset base, defensive sector, and proactive management suggest limited downside risk, barring major macro shocks. Monitor for significant currency volatility or operational setbacks.
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If You Are Not Currently Holding MLT: Consider accumulating on dips if you desire logistics sector exposure in Asia-Pacific. MLT offers a well-diversified, high-quality portfolio, but near-term distributable income growth may remain flat as divestments and forex headwinds persist.
Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Please perform your own due diligence and consult a licensed financial advisor before making investment decisions.
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