In the report, Mapletree Industrial Trust’s (MINT) carries a stable outlook. Its 12-month trailing ICR was flat q-o-q at 4x as at FY2025, but lower than the 4.5x in FY2024 (MINT has a March year-end). Mapletree Logistics Trust’s 12-month trailing ICR was 2.9x, unchanged y-o-y. Fitch expects the ICRs of these two Mapletree REITs to decline moderately in the current financial year because rental reversions could moderate and, in some cases, turn negative.
Fortunately, S-REITs' distributable income is likely to benefit from declining Sora which in turn is the result of excess liquidity. The Singapore dollar, like the Swiss franc, is something of a haven currency because of its stability despite its small size.
MLT reported a currency translation loss of $116.0 million and $62.0 million net fair value loss on its investment properties. The fair value loss was due to properties in China, South Korea and Singapore. On the other hand, MLT completed divestments of 14 properties in FY2025 for $209 million at an average premium to valuation of 17%.
Fitch has calculated MLT’s net debt to ebitda at 9x in FY2025 (MLT has a March year-end), with the ratio remaining stable in the next financial year. This implies that MLT takes nine years to repay its debt if its ebitda and net debt remained constant. Fitch has a negative outlook for MLT.
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MINT has healthier metrics, with Fitch estimating net debt to ebitda at 6.7x in FY2025 and the current financial year. MINT’s net debt to ebitda is among the lowest, and its ICRs are among the highest of the REITs cited in the report. MINT has a stable outlook.
A major negative factor for MINT is the prospects for business parks in Singapore. “Suburban offices and business parks will remain pressured amid high vacancies in most markets as economic uncertainties mount,” Fitch says. The oversupply of business parks in Singapore following the completion of Punggol Digital District is an added headwind.
The other stressed sector is likely to be lodging, according to the Fitch report. Fitch expects the recovery in Apac lodging demand to moderate in the next 12 months because of a continued slowdown in China’s economic growth. “GDP growth is expected to fall to 3.9% and 3.8% in 2025 and 2026 and will weigh on consumption and outbound travel,” the ratings agency says.
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China is a key source market for regional travel. “Rated lodging REITs are more exposed to near-term economic challenges, in light of their exposure to almost-overnight repricing of hotel rooms and more limited contracted lease rent than other commercial property landlords,” Fitch says.
In the report, CDL Hospitality Trustscarries a negative outlook. Its trailing 12-month ICR in 1Q2025 was 2.2x, down from 2.3x for the trailing 12-months in 4Q2025. Fitch has calculated CDLHT’s ebitda net leverage (net debt to ebitda) at 10.7x in FY2024 and 9x in 2025, the highest among the issuers in the report.
As at May 27, CDLHT’s unit price is down 13% this year, and 22% over a one-year period.
