Broker: OCBC Group Research
Date of Report: 29 July 2026
Excerpt from OCBC Group Research report.
Report Summary
Stock Focus: Mapletree Logistics Trust (MLT)
Ticker: MLT SP EQUITY
- Action: BUY (as at 29 July 2026)
- Target Price (Fair Value): SGD 1.34
- Last Close: SGD 1.20
- Key Highlight: MLT’s 1QFY27 distribution per unit (DPU) increased slightly by 0.2% YoY to 1.816 Singapore cents, marking the first YoY growth after nine quarters of decline.
- Portfolio Performance: Occupancy softened to 96.4% (down 0.5ppt QoQ) and rental reversions moderated to 0.9%, impacted by weaker results in China and some leasing downtime in Australia and Singapore. Excluding China, rental reversions were stronger at 2.3%, with Vietnam, Singapore, and Japan leading growth.
- Financials: 1QFY27 gross revenue and net property income rose 0.8% and 2.0% YoY, respectively. Borrowing costs decreased due to lower base rates and loan repayments from divestment proceeds. Aggregate leverage ratio decreased slightly to 40.5%, with 82% of debt hedged at fixed rates.
- Strategic Focus: Capital recycling is a key strategy, with three recent divestments (two in China, one in Singapore) at a total value of ~SGD155m, all at or above valuation. Proceeds are expected to be redeployed in Singapore and emerging Asian markets.
- Risks: Rental default by key tenants, rising interest rates, and foreign currency volatility due to geographic diversification.
- Potential Catalysts: Stronger-than-expected rent increases, accretive acquisitions, or additional distributions from capital recycling could drive further upside.
Implication: Maintain BUY with a fair value of SGD 1.34. Investors should note the gradual recovery in DPU, emphasis on capital recycling, and management’s disciplined approach to portfolio and leverage, despite ongoing challenges in select markets.
Above is an excerpt from a report by OCBC Group Research. Clients of OCBC Group Research can access the full research report from the broker’s website.
