Mapletree Logistics Trust (MLT), an Asia-focused logistics real estate investment trust, has reported a 12.4% year-on-year decline in its distribution per unit (DPU) for the first quarter of FY26. The decrease is attributed to the depreciation of several regional currencies against the Singapore dollar and ongoing trade tensions impacting tenant sentiment, according to a UOBKayHian research note.
MLT’s gross revenue and net property income fell by 2.4% and 2.1% respectively, primarily due to lower contributions from China and South Korea, as well as the absence of income from 12 divested properties. The Australian dollar, Chinese yuan, Hong Kong dollar, and Korean won all weakened against the Singapore dollar, further affecting the trust’s financial performance. Borrowing costs also rose by 2.3% year-on-year.
Despite these challenges, MLT achieved a positive rental reversion of 2.1% in the quarter, driven by strong performances in Singapore and Japan. However, China experienced a negative rental reversion of 7.5%, with revenue from the region declining by 18.4% due to continued negative rental trends.
The trust’s portfolio occupancy eased slightly to 95.7% as of June 2025, with Singapore’s occupancy dropping due to the newly completed Mapletree Joo Koon Logistics Hub. MLT’s management remains cautious, expecting tenants to be wary due to uncertainties in trade policies, which could affect demand for warehouse space.
Looking ahead, MLT plans to retain divestment gains, with a target to complete divestments worth $110 million (S$150 million) in FY26. The redevelopment of 5A Joo Koon Circle in Singapore is progressing well, with management expecting occupancy to reach 80% by the end of FY26.
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