Mapletree Logistics Trust share price in confidence crisis

Lifetime Membership A few months ago, I posted an article about Mapletree Logistics Trust share price, suggesting that I would adopt a “wait-and-see” approach. Boy, am I glad I done so. Just after that post, the counter took a nosedive, plummeting from the S1.20 to $1.03 on April 9, 2025. This was a clear warning sign that the counter was still in ICU. Talk about dodging a bullet!

The reason for the punctured form of Mapletree Logistics Trust share price? A relentless, nine-quarter streak of falling distribution per unit (DPU). The latest DPU of 1.812 cents was the lowest since the financial crisis of 2013-2014, a freakish reminder of the deep-seated issues plaguing this S-REIT.

But what’s really driving this decline? It’s not just one thing; it’s a perfect storm of headwinds that have been punishing MLT’s financial performance.

For background, Mapletree Logistics Trust (SGX: M44U) is an S-REIT that invests in a diversified portfolio of logistics real estate in Asia Pacific with the aim of providing its unitholders with a stable distribution stream. As at 29 August 2025, it has a portfolio of 175 properties in Singapore, Australia, China, Hong Kong SAR, India, Japan, Malaysia, South Korea and Vietnam and the total value of assets under management is $13.0 billion.

FY2024/25 makes for grim reading. Due to the persistent high interest rates in 2024 and large part of 2025, borrowing costs rose 4.0% year-on-year to $38.7 million. This continued to impact MLT’s performance at the distribution level. To compound misery, DPU was also hit by lower revenue contribution from China, the absence of contribution from divested properties, and depreciation of various regional currencies.

This is indeed the perfect storm for Mapletree Logistics Trust share price. Question now is whether the management’s rejuvenation strategy is really working or making things worse? For the past 2 years, the management’s key mitigating action for its ailing China’s assets is to rejuvenate its asset portfolio but so far, the result has not been ideal. And now, unitholders are paying the price – falling unit price and falling DPU.

Mapletree Logistics Trust sinks or swims in 2025?

Mapletree Logistics Trust share price lost its way

Mapletree Logistics Trust share price in trouble

When Mapletree Logistics Trust appointed a new CEO, my initial inclination was to reserve judgment and give her at least three years to prove her mettle. However, the last few quarters have unfolded in a way that makes me question my initial patience. The truth is, I’m losing confidence that the new leadership has the ability to turn the tide and restore Mapletree Logistic Trust share price to its glory days. Under her tenure, MLT seems to have lost its “winning” form and is barely treading water in survival mode.

As we enter the final quarter of 2025, the Fed is expected to announce several rounds of interest rate cuts. Based on September 2024’s jumbo interest cuts by the Fed, there is a high chance that Mapletree Logistic Trust share price may rally in the coming months. In this article, I will share the outlook of Mapletree Logistic Trust share price in 2026.

Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. I am vested in this counter, so my views on Mapletree Logistics Trust share price may be biased.

Mapletree Logistics Trust share price needs catalyst

While investors may pin the blame on the previous CEO, Ms Ng Kiat, for causing MLT’s China misadventure, the new CEO (Ms Jean Kam) has not [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

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