MIT vs MLT: Which Industrial REIT Is the Stronger Buy Right Now?

Core Viewpoint - Industrial real estate investment trusts (REITs) are favored by investors due to their resilient performance and exposure to growth trends like e-commerce and AI, with Mapletree Industrial Trust (MIT) and Mapletree Logistics Trust (MLT) being key players in this sector [1]. Mapletree Industrial Trust (MIT) - MIT has a portfolio valued at S$8.5 billion, focusing on industrial properties and data centers in Singapore and North America as of September 30, 2025 [2]. - For 2Q FY25/26, MIT's distribution per unit (DPU) decreased by 5.6% year-on-year to S$0.0318, attributed to exchange rate headwinds, reduced rental income, and property divestments [3]. - The overall occupancy rate for MIT is stable at 91.3%, with a positive rental reversion of 6.2% for its Singapore portfolio, which constitutes 45.2% of its total portfolio [4]. - MIT reported a lower leverage of 37.3% in 2Q FY25/26 compared to 40.1% in 1Q, with a cost of debt of 3.0% and 92.9% of its debt hedged or fixed [5]. Mapletree Logistics Trust (MLT) - MLT's portfolio is valued at S$13.0 billion, focusing on logistics assets across nine Asia-Pacific markets [6]. - In 2Q FY25/26, MLT's DPU fell by 10.5% year-on-year to S$0.01815 due to forex impacts and the absence of divestment gains [6]. - MLT's occupancy rate improved to 96.1%, up from 95.7% in the previous quarter, indicating strong demand for its assets, with a positive rental reversion of 0.6% [6]. - MLT has an aggregate leverage ratio of 41.1% and a cost of debt of 2.6%, with 84% of its borrowings hedged or fixed [7]. Comparative Analysis - MIT has a trailing twelve-month (TTM) yield of approximately 6.0%, while MLT has a TTM yield of about 5.6% [10]. - Both REITs are expected to maintain distribution growth due to their exposure to data centers and e-commerce, although they face risks from foreign exchange fluctuations [10]. - MIT is positioned for growth in AI and digitalization through its data centers, while MLT benefits from regional e-commerce growth through its logistics properties [12].