“We believe MLT can now focus on growth again with DPU stabilising. The planned disposal of its China properties to its Sponsor’s RMB fund in 2Q2026 would enable MLT to recycle its portfolio into higher-yielding and growth properties in Malaysia, India and Vietnam. The trailing 4Q2026 annualised NPI yield for MLT’s China portfolio stands at 3.3%-3.4% versus potential 6%-8% acquisition yields for Malaysia, India and Vietnam properties. In our estimates, we assume $200 million of divestments, including in China, will be recycled into $200 million of acquisitions at an initial 6% NPI yield,” Song and Khi suggest.
Nonetheless, JP Morgan is forecasting cuts in FY2027 and FY2028 DPU of 1.3% to 1.7% to 7.3 cents and 7.4 cents respectively compared to DPU of 7.262 cents in FY2026 for the 12 months to March 31. As part of the assumptions, the duo forecast that MLT’s China portfolio occupancy falls to the high 80%.
