A Review of Mapletree Logistics Trust’s 2Q and 1H FY2025

Core Viewpoint - Mapletree Logistics Trust (MLT) has reported a mixed set of financial results for the 2nd quarter and the first half of FY2025/26, with challenges stemming from currency headwinds and lower contributions from properties in China, while occupancy rates in other regions remain strong [4][26]. Financial Performance - For 2Q FY2025/26, MLT's gross revenue decreased by 3.2% year-on-year to S$177.5 million, primarily due to weaker foreign currencies and absence of revenue from divested properties [5][6]. - Net property income fell by 3.3% to S$153.3 million, leading to a 9.6% decline in distributable income to unitholders, which amounted to S$92.5 million [5][8]. - For the first half of FY2025/26, gross revenue was down 2.8% to S$354.9 million, and net property income decreased by 2.7% to S$306.7 million [9][10]. Portfolio Occupancy - MLT's overall portfolio occupancy improved to 96.1%, with notable increases in Singapore, South Korea, and Malaysia, while properties in China remained above 90% [12][13]. - Rental reversions were positive in most regions, except for China, which recorded a negative rental reversion of -3.0%, although this was an improvement from -7.5% in the previous quarter [14][25]. Debt Profile - MLT maintains a healthy debt profile with an aggregate leverage of 41.1%, interest coverage ratio of 2.9 times, and an average cost of debt reduced to 2.6% [16][18]. - The debt maturity schedule is well-staggered, with only 2% of borrowings due for refinancing in the second half of FY2025/26 [19]. Distribution Payout - The distribution payout to unitholders for 2Q FY2025/26 was 1.815 cents per unit, reflecting a 10.5% decline year-on-year, while the total payout for the first half was 3.627 cents per unit, down 11.4% from the previous year [21][22]. Management Outlook - The CEO highlighted a resilient operational performance despite economic uncertainties, with a focus on rejuvenating the portfolio and seizing new opportunities as they arise [23][24].