• Headline 1HFY25 DPU of 4.095Scts (-9.8% y/y) in line, excluding divestment gains, core DPU of c.3.861 Scts (-7.9% y/y) forming 49% of our estimates 
• Reversions for China logistics (c.20% of revenues) still negative but other larger markets continue to power on (+1.2% to 12.5%) 
• Superior financial to manage interest costs well through rate hike cycle, remaining stable q/q at sub 3% level 
• Maintain BUY, TP maintain at SGD1.75 

(+) DPU tracking in line with estimates.  Mapletree Logistics Trust (“MLT”) reported 1HFY25 DPU of steady set of results with 1HFY25 DPU of 4.095 Scts (-9.8% y/y), forming 49.5% of our full year estimates. Excluding divestment gains, core DPU was 7.9% lower y/y at 3.861 Scts. The overall underlying performance remained stable with gross revenues and net property income coming in 1.1% and 1.5% lower y/y to SGD365mn and SGD315.3mn respectively. This was due to lower contribution from China, divestment activities and currency weakness (JPY, KRW, CNYT and VND) vs the SGD. The drop was mitigated from contributions from acquisitions in Singapore, Australia. On a constant currency basis, gross revenues and net property income would have risen by 1.0% and 0.5% y/y respectively. The MAS leverage ratio inched slightly higher to 40.2%% (+ 0.6% ppts q/q), with the (debt + perpetual) / asset ratio increasing slightly to 44.6%, as the manager took on more debt to fund recent acquisitions. We note that these levels while have inched higher in recent quarters, are still within management’s comfortable levels. 

Our view

(+) Value opportunity at close to 6% yield. MLT’s share price current trade at a prospective FY25-26F yield of c.6% due to rising concerns on MLT’s China (c.20% of revenues) and Hong Kong (c.16% of revenues) operations given the more subdued operating environment. These concerns are not new but are largely unfounded, especially for Hong Kong where overall operating metrics remain resilient. That said, MLT has exposure to developed markets in Singapore, Japan, Australia and Asia Pacific (ex China), where the outlook remains robust with the sector currently favours landlords. In the event of a global slowdown, we expect increased positioning into sectors that can navigate economic downshifts and MLT is well placed to deliver attractive total returns at the current level. BUY, TP SGD1.75.