MLT reported on Jan 21 DPU of 2.003 cents for the quarter, down 11.1% y-o-y. Net property income fell 1.5% y-o-y on the back of a 0.9% decline in revenue. The decline in revenue was driven by a lower contribution from its China portfolio, the absence of revenue from its divested properties and a stronger Singapore dollar. This was slightly offset by higher contributions from its Singapore, Australia and Hong Kong assets, as well as contributions from newly acquired assets.
Mapletree Logistics Trust’s (MLT) results for 3QFY2025 ended Dec 31, 2024 were in line with expectations, and Morningstar Equity Research analyst Xavier Lee saw “no major surprises”.
Still, although Lee thinks MLT units are “undervalued”, he thinks the REIT’s distribution per unit (DPU) for FY2026 will be “dragged down” by weakness in its China portfolio and higher borrowing costs from refinancing low-cost debt that is set to expire over the coming quarters.
