Mapletree Logistics Trust's 1Q FY25/26 Result Review

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Gross revenue and NPI declined slightly year-on-year, mainly due to the absence of contributions from divested properties, currency weakness in foreign markets, and lower contributions from China. These were partially offset by stronger performance from Singapore, Australia, and Hong Kong SAR, as well as the full-period contribution from acquisitions completed in the previous fiscal year.

However, the amount distributable to unitholders and DPU fell significantly. This was largely due to:

• Absence of distribution from divestment gains
• Higher foreign exchange losses
• A notably lower figure under "Other non-tax deductible items and adjustments" (Note A of the distribution statement), for which no detailed breakdown was provided

Rental Reversion

MLT recorded a positive rental reversion of +2.8% for the quarter. Most markets contributed positively, except for China, which saw a negative rental reversion, and Australia, where there were no lease renewals during the period.

Divestment

Between May and July, four properties were divested, all at premiums to their latest valuations.

Redevelopment

5A Joo Koon Circle (formerly 51 Benoi Road) attained TOP in May 2025, with 60% of space committed and another 25% under negotiation. Additionally, the planned amalgamation and redevelopment of Subang 3 and 4 is pending regulatory approval, with completion targeted for 1H 2028.

Related Parties Shareholding

• REIT Sponsor's Shareholding: Moderate
• REIT Manager's Shareholding: Less Favorable
• Directors of REIT Manager's Shareholding: Less Favorable

Lease Profile

• Committed Occupancy: Moderate
• Income Received in SGD/Major Currencies: Less Favorable
• Highest Annual Lease Expiry in 4 Years: Less Favorable
• WALE: Less Favorable
• Weighted Average Land Lease Expiry: Less Favorable

Debt Profile

• Adjusted Interest Coverage Ratio: Moderate
• Cost of Debt: Favorable
• Gearing Ratio: Moderate
• Fixed Rate Debt Proportion: Favorable
• Unsecured Debt Proportion: Moderate
• Highest Annual Debt Maturity in 4 Years: Favorable
• WADM: Favorable

Diversification Profile

• Top Geographical Weightage: Favorable
• Top Property Weightage: Moderate
• Top 5 Properties' Weightage: Favorable
• Top Tenant Weightage: Moderate
• Top 10 Tenants' Weightage: Favorable

Key Financial Metrics

• Property Yield: Moderate
• Manager's Fees over Operating Distributable Income: Less Favorable
• Operating Distributable Income on Capital: Moderate
• Operating Distributable Income Margin: Favorable
• Operating Distribution Proportion: Less Favorable

DPU Breakdown

• TTM Distribution Breakdown:
• 79.6% from Operation
• 15% from Management Fees Paid in Units
• 5.4% from Divestment Proceeds

Trends (Up to 10 Years)

• Uptrend: NAV per Unit
• Slight Uptrend: None
• Flat: Committed Occupancy
• Slight Downtrend: DPU from Operations
• Downtrend: Adjusted Interest Coverage Ratio, Top 5 Properties' Weightage, Top 10 Tenants' Weightage, Property Yield, Operating Distributable Income over Manager's Fees, Operating Distributable Income on Capital, Operating Distributable Income Margin, Operating Distribution Proportion

Price Range & Relative Valuation Metrics

• Dividend Yield: Average for 1y, 3y & 10y; Above +1SD for 5y
• P/NAV: Average for 1y; Below -1SD for 3y, 5y & 10y

Author's Opinion

Compared to the previous quarter, gross revenue and NPI remained stable, but DPU declined due to the lack of divestment gains. On the debt front, only 6% of total debt is due for refinancing in this fiscal year.

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S-REIT Comparison - Comparison among Singapore REITs

REIT Review - List of previous REIT review posts

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*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my findings and should not be considered professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decisions.