In the report, Mapletree Industrial Trust (SGX:ME8U
) ’s (MINT) carries a stable outlook. Its 12-month trailing ICR was flat q-o-q at 4x as at FY2025, but lower than the 4.5x in FY2024 (MINT has a March year-end). Mapletree Logistics Trust (SGX:M44U) ’s 12-month trailing ICR was 2.9x, unchanged y-o-y. Fitch expects the ICRs of these two Mapletree REITs to decline moderately in the current financial year because rental reversions could moderate and, in some cases, turn negative.
In a report dated May 27, Fitch Ratings explores factors affecting issuers. "A prolonged global economic slowdown could weigh on tenant credit profiles across most commercial property segments, curtailing expansion plans and investment appetite. This could in-turn pressure occupancy and rent-reversions of rated Southeast Asian REITs as lease contracts expire, weighing on some issuers with limited rating headroom," the report says.
These downward pressures would negatively impact interest rate coverage ratio (ICR) and net debt to ebitda ratio (which is also known as ebitda net leverage). The latter assesses a REIT’s ability to pay off its debt using its ebitda and amortisation. Ratings agencies often use these two metrics when undertaking ratings actions.
