Highlights:
3Q FY25/26 Distribution per Unit (“DPU”) of 1.816 cents marks third consecutive quarter of
steady operational results
Healthy operating fundamentals: 96.4% occupancy and 1.7% rental reversion outside China
Proactive capital management reduced borrowing costs and maintained low cost of debt.
Compared to 2Q FY25/26, gross revenue and net property income (“NPI”) for 3Q FY25/26 were 0.4%
and 0.9% lower respectively. This reflects income loss from four divested properties and reduced
contribution from China, mitigated by stronger performance from Singapore, including higher
contribution from the newly completed redevelopment project. At the distribution level, distributable
income rose 0.2% and DPU increased 0.1% quarter-on-quarter.
On a year-on-year (“y-o-y”) basis, 3Q FY25/26 gross revenue and NPI declined by 3.1% and 3.3%
respectively, primarily due to the depreciation of regional currencies against the Singapore Dollar.
On a constant currency basis, gross revenue and NPI would have recorded smaller declines of 1.2%
and 1.5%, largely due to the loss of contributions from 12 divested properties and a lower contribution
from China, offset in part by higher contributions from the existing portfolio, and contribution from the
newly completed redevelopment project.
Borrowing costs declined by 4.3% y-o-y driven by proactive refinancing efforts and paring down of
debt with proceeds from divestments. With the cessation of distributing divestment gains since 1Q
FY25/26, the amount distributable to Unitholders decreased 8.5% y-o-y and DPU was 9.3% lower
on an enlarged unit base. Excluding divestment gains, adjusted DPU from operations registered a
2.1% decline compared to the prior year.
roject. Absent the distribution of divestment gains, distributable
income was 9.8% lower y-o-y at S$277.1 million and DPU was 10.7% lower at 5.443 cents. Excluding
divestment gains, adjusted DPU from operations was 4.8% lower y-o-y.
Portfolio Highlights
MLT’s operating metrics remain healthy, driven by the Manager’s proactive portfolio management
efforts. Portfolio occupancy improved from 96.1% last quarter to 96.4% as at 31 December 2025 due
to higher occupancies in Singapore, Japan and South Korea. The weighted average lease expiry of
the portfolio (by net lettable area) was 2.6 years. For leases renewed/replaced in 3Q FY25/26, the
average rental reversion achieved was 1.7% excluding China (1.1% including China). China’s rental
reversion improved from -3.0% in the previous quarter to -2.2% this quarter.
Capital Management Highlights
Total debt outstanding decreased by S$61 million q-o-q to S$5,460 million as at 31 December 2025,
primarily due to repayment of loans during the quarter with divestment proceeds. Through proactive
capital management efforts, the weighted average borrowing cost for 3Q FY25/26 was maintained
at 2.6% per annum, while the aggregate leverage ratio was 40.7%. Based on the available committed
credit facilities of about S$852 million, MLT has more than sufficient facilities to meet its maturing
debt obligations in FY25/26 and FY26/27.
In line with its proactive capital management approach, approximately 74% of MLT’s income stream
for the next 12 months has been hedged into Singapore Dollar and around 84% of total debt has
been hedged into fixed rates.
