Mapletree Logistics Trust stock: Q2 payout holds near flat

Mapletree Logistics Trust reported largely stable second-quarter results for the period ended September 30, 2026, with growth in revenue and net property income offset by a nearly unchanged distribution. The Business Times reported on October 28 that distributable income rose 0.9 percent to S$93.3 million.

Growth remains measured

Revenue increased 1.4 percent year over year to S$180 million, while net property income gained 1 percent to S$154.8 million. The distribution per unit was S$0.01816, up 0.1 percent from the year-earlier period.

Management attributed the operating improvement to contributions from the Mapletree Joo Koon Logistics Hub redevelopment, an India acquisition, organic growth in Singapore and currency movements. Divested properties partly offset those gains.

China remains a pressure point

Portfolio occupancy stood at 96.4 percent at the end of September. Average rental reversion was positive at 2.1 percent, although China remained weaker, with rental reversion at minus 1.7 percent. Management expects conditions in China to remain mixed, with some regions stabilizing while excess supply continues to pressure rents in South China.

Singapore rental reversions are expected to remain healthy at between 3 and 5 percent, according to the report. The trust also expects positive rental reversions across Malaysia, Vietnam and India.

Changi project sets next milestone

Mapletree Logistics Trust plans to redevelop two adjacent Singapore properties at 9 and 15 Changi South Street 2 into a five-storey Grade A ramp-up warehouse. The project is expected to cost S$141 million, expand gross floor area by 34 percent to almost 500,000 square feet and deliver a return on investment of 6 to 6.5 percent, according to management.

Construction is expected to start in the first quarter of 2027 and finish in the second quarter of 2029. The manager said the redevelopment should not materially affect net property income because the existing properties are not fully occupied.

Balance sheet improves

Aggregate leverage fell to 37.5 percent at the end of September from 40.5 percent in the preceding quarter after proceeds from perpetual securities were used to repay debt. The weighted average borrowing cost was 2.7 percent, with management expecting 2.7 to 2.8 percent for fiscal 2027.

Singapore logistics platform

Mapletree Logistics Trust is a Singapore-listed logistics property trust focused on warehouses and related logistics facilities across Asian and Pacific markets. Its portfolio strategy combines developed markets with emerging markets, with management targeting about 70 percent of the portfolio in developed markets and 30 percent in emerging markets. The trust is therefore positioned as a regional logistics real estate platform, while its earnings remain sensitive to occupancy, rental renewals, interest rates and currency movements.

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