Mapletree Logistics Trust (SGX: M44U), or MLT, is facing several headwinds. The blue-chip logistics REIT just reported its latest set of earnings for its fiscal 2025 first quarter (1Q FY2025) ending 30 June 2024. Higher interest rates have dented MLT’s distributable income and resulted in an 8.9% year-on-year decline in distribution per unit (DPU) for its latest quarter. Does the REIT see a recovery on the horizon?

A weak set of financials

For 1Q FY2025, MLT reported a 0.3% year-on-year dip in gross revenue to S$181.7 million. Net property income slipped by 0.9% year on year to S$156.7 million. Borrowing costs, however, spiked by 9.4% year on year to S$38.5 million. As a result, distributable income fell by 7.4% year on year to S$103.7 million, resulting in the REIT’s DPU declining by 8.9% year on year to S$0.02068. Aside from higher finance costs, the REIT manager mentioned that gross revenue was negatively impacted by weakness in China. Rental reversions in the Middle Kingdom continued to stay negative for 1Q...