Mapletree Logistics Trust (SGX: M44U): 3Q & 9M FY2025

Core Viewpoint - Mapletree Logistics Trust (MLT) has experienced a decline in financial performance for 3Q FY2024/25 and 9M FY2024/25, primarily due to currency depreciation against the Singapore Dollar and weaker contributions from properties in China, despite some offsetting factors from new developments and existing properties in other regions [2][3][5]. Financial Performance - For 3Q FY2024/25, gross revenue decreased by 3.1% to S$176.8 million, while net property income fell by 3.3% to S$152.0 million [2][3]. - Distributable income to unitholders dropped by 8.5% to S$92.7 million, reflecting the lower net property income and absence of contributions from divested properties [4]. - For the first nine months, gross revenue and net property income both declined by 2.9% to S$531.7 million and S$458.7 million, respectively, due to currency depreciation and weaker contributions from properties in China and South Korea [5][6]. Property Operating Expenses - Property operating expenses decreased by 1.6% year on year to S$24.8 million, attributed to currency depreciation and the absence of expenses from divested properties [4][7]. - For the first nine months, property operating expenses fell by 2.5% to S$73.0 million, influenced by similar factors as the quarterly performance [5][7]. Portfolio Occupancy and Rental Reversion - The portfolio occupancy rate improved to 96.4%, with properties in Australia, Malaysia, Vietnam, and India achieving full occupancy [9]. - Rental reversion for new and renewed leases showed positive percentages, with an overall increase of 1.1% in 3Q FY2025/26, although China experienced a negative reversion of -2.2% [10]. Debt Profile - MLT's aggregate leverage decreased slightly to 40.7%, remaining below the regulatory limit of 50% [12][20]. - The interest coverage ratio remained stable at 2.9 times, with an average cost of debt at 2.6% [12]. Distribution to Unitholders - Distribution per unit for 3Q FY2025/26 fell by 9.3% to 1.816 cents, driven by lower net property income and a larger unit base [15]. - For the first nine months, distribution per unit decreased by 10.7% to 5.443 cents [17]. Outlook - The logistics sector remains resilient despite macroeconomic uncertainties, with the company focusing on portfolio rejuvenation and expanding its regional footprint to meet growing demand for logistics space [17].