Mapletree Logistics Trust (M44U) Q1 25/26 earnings summary

Executive summary

• Gross revenue for 1Q FY25/26 was S$177.4 million, down 2.4% year-over-year, mainly due to divestments, lower contributions from China, and currency depreciation, partially offset by gains in Singapore, Australia, and Hong Kong SAR.

• Net property income (NPI) was S$153.4 million, a 2.1% decrease year-over-year, reflecting lower property-related taxes, loss allowances, and absence of income from divested assets.

• Distribution per unit (DPU) was 1.812 cents, down 12.4% year-over-year, mainly due to weaker regional currencies, divestments, and absence of divestment gains.

• Portfolio occupancy stood at 95.7%, impacted by the addition of a new logistics hub with lower initial occupancy; excluding this, occupancy would be 96.3%.

• Portfolio comprised 178 properties across nine markets, with total assets under management of S$13.0 billion as of 30 June 2025.

Financial highlights

• Net income for the period was S$79.7 million, down 3.2% year-over-year.

• Earnings per unit (EPU) was 1.45 cents, a 5.2% decrease from the prior year.

• Borrowing costs rose 2.3% year-over-year to S$39.4 million due to higher base rates and new loans for acquisitions and capex.

• Amount distributable to unitholders declined 11.3% year-over-year to S$92.0 million.

• Sequentially, NPI and DPU from operations improved by 0.4% and 0.5% quarter-over-quarter.

Outlook and guidance

• High global economic uncertainty and recent US tariff announcements may dampen demand for logistics space and economic activity.

• Manager remains focused on maintaining healthy occupancy, steady rental income, and cost management.

• Rising borrowing costs and regional currency depreciation are expected to weigh on financial performance; 74% of income and 84% of debt are hedged.

• Ongoing portfolio rejuvenation with selective divestments and reinvestment in modern assets to strengthen resilience and growth.

• Majority of revenue (85%) comes from tenants focused on domestic consumption, providing some resilience.