Mapletree Logistics Trust FY25/26: Headline DPU Falls 9.8% To 7.262 Cents On The End Of Divestment-Gain Distributions, But Core Operating DPU Is Down Only 3.4% As Singapore Revenue Rises 5.2% Against A 13.3% China Slide

Mapletree Logistics Trust closed FY25/26 with a distribution per unit (DPU) of 7.262 Singapore cents, down 9.8% year-on-year — but nearly all of that decline is mechanical, not operational: it is the one-off distribution of divestment gains rolling off, which contributed S$27.0 million in FY24/25 and nothing this year. Strip that out and operating DPU fell just 3.4%.

Mapletree Logistics Trust (SGX: M44U), the Mapletree-sponsored logistics REIT, reported results for the financial year ended 31 March 2026 alongside its annual report, an independent Asia-Pacific logistics market study and an appendix renewing its unit buy-back mandate. The portfolio spans 175 properties across nine Asia-Pacific markets, with assets under management (AUM) of S$13.1 billion, down 1.6%. Gross revenue was S$708.3 million (−2.6%) and net property income (NPI) S$610.2 million (−2.4%).

The headline understates the operations

The amount distributable to Unitholders fell 8.9% to S$370.1 million; excluding the divestment-gain distribution it was down 2.5%. On DPU, the headline 7.262 cents is −9.8%, but against the prior year’s adjusted (ex-gains) DPU of 7.519 cents the operating decline is 3.4%. Strip out the completed divestments and currency translation, and underlying gross revenue and NPI would actually have risen — by S$6.1 million and S$5.4 million respectively. Portfolio occupancy improved to 96.9% (from 96.2%), weighted average lease expiry (WALE) was 2.5 years, and rental reversion was a positive 2.3% across the portfolio excluding China.

Singapore strengthens as China keeps bleeding

The geographic split is the real story. Singapore — already the largest market at 29.9% of revenue — grew gross revenue 5.2% to S$211.5 million, lifted by the completed Mapletree Joo Koon Logistics Hub redevelopment and higher contributions from existing assets. China moved the other way, down 13.3% to S$107.1 million. China occupancy held at 94.2% (versus an industry average around 80%) and its negative rental reversion is narrowing, but it remains the portfolio’s soft point, with about 70% of total revenue earned overseas and exposed to weaker regional currencies.

Rejuvenation at a premium

The manager continued its asset-by-asset rejuvenation: six properties were divested in FY25/26 at an average ~20% premium to valuation — three in Singapore (1 Genting Lane, 8 Tuas View Square, 31 Penjuru Lane), plus one each in Malaysia (Subang 2), South Korea (Mapletree Logistics Centre – Yeoju) and Australia (28 Bilston Drive, Barnawartha North). Proceeds are being recycled into Grade A: the S$53.2 million freehold Mapletree (Bhiwandi) Logistics Park in Mumbai completed in March 2026, and the S$205 million Joo Koon redevelopment — which delivered a 2.3-times increase in gross floor area (GFA) and was fully leased within a year of receiving its Temporary Occupation Permit. Across two decades the trust has executed roughly S$1.1 billion of divestments at a 22% average premium.

Low-cost debt, well hedged — and trading below NAV

Capital management remained the defensive backbone. Average cost of debt eased to 2.6% (from 2.7%), interest cover ratio (ICR) was 2.9 times, aggregate leverage 40.6%, and the trust holds a Fitch BBB+ rating with only S$89 million of debt maturing in FY26/27 against S$716 million of undrawn committed facilities. Some 83% of debt is hedged to fixed rates and about 75% of next year’s income is hedged into or derived in Singapore dollars. Net asset value (NAV) per unit was S$1.26 (−3.8%), pressured by a S$325.0 million currency translation loss partly offset by a S$47.8 million net fair-value gain. With the units closing FY25/26 at S$1.15, they trade at roughly a 9% discount to NAV — the context for the renewed unit buy-back mandate to be tabled at the 20 July 2026 AGM (5% limit, none executed under the prior mandate; on a pro-forma full take-up DPU would rise to 7.445 cents but aggregate leverage would climb to 42.9%).

The read-through

This is a results set whose reported decline is mostly one-off gains rolling off, not operations breaking down — a low-cost, well-hedged platform with improving occupancy and a Singapore engine that is strengthening. The open question is whether Singapore and India recycling, plus a stabilising China, can outpace the income lost to divestments and softer regional currencies. The buy-back mandate adds optionality at a NAV discount, but the manager has not pulled the trigger, and leverage headroom is the constraint that makes that a real choice rather than a default.

Source: Mapletree Logistics Trust Annual Report FY2025/26, the Asia-Pacific Annual Logistics Real Estate Market Report (Independent Market Research, May 2026), and the Appendix to Unitholders on the proposed renewal of the Unit Buy-Back Mandate dated 19 June 2026. PropertyAtlas.sg analysis with TKRE Research.