Interest rates have been elevated since the pandemic, but central banks have begun cutting rates in the last two years.
Benchmark funding rates like Singapore Overnight Rate Average (SORA) have eased from their highs, reducing the financing pressure across the economy.
Against the backdrop, Singapore REITs (S-REITs) have performed strongly, delivering their best yearly performance since 2019.
Although industrial REITs have faced challenges from global uncertainties and supply pressures, they remain one of Singapore’s strongest sectors.
Investors should be familiar with two popular industrial REITs, namely Mapletree Logistics Trust (SGX: M44U), or MLT, and Mapletree Industrial Trust (SGX: ME8U), or MIT.
Both REITs have the same sponsor in Mapletree Investments Pte Ltd.
Let’s compare these two REITs to see which makes the better investment.
Portfolio Composition
First off, we look at the composition of each REIT’s portfolio.
As of 30 September 2025, MLT’s portfolio is larger than MIT’s with assets under management (AUM) of S$13.0 billion versus S$8.5 billion.
The logistics REIT also has more properties than its counterpart, at 175 versus 136.
Moreover, MLT is present in more countries than MIT and provides exposure to Asian countries such as China, India, Japan, and Vietnam.
MIT, on the other hand, has most of its portfolio concentrated in Singapore and the US.
In terms of industrial asset type, MIT has a slight advantage in having a greater diversity with business parks, data centres, and hi-tech buildings within its portfolio.
Meanwhile, MLT mainly has logistics properties within its portfolio.
Winner: MLT
Financials and DPU
Moving on to the financials of each REIT, both MLT and MIT recorded lower topline and distribution figures in 2QFY2025/26 compared to the same quarter last year.
The depreciation of the US dollar and other regional currencies against the Singapore dollar partly weighed on reported earnings.
Gross revenue for MLT decreased by 3.2% year on year (YoY) to S$177 million versus a steeper 6.2% decline for MIT to S$170 million.
Net property income also fell 3.3% YoY for MLT compared with MIT’s 7.8% YoY dip.
However, MLT reported a larger 10.5% YoY drop in its distribution per unit (DPU) to S$0.0181, exacerbated by the absence of one-off divestment gains that boosted the previous year, while MIT saw a smaller decline of 5.6% YoY to S$0.0318.
While MLT showed greater resilience at the operating level, MIT’s smaller decline in distributions makes it a stronger performer from a financial perspective in this quarter.
Winner: MIT
Debt Metrics
Next, we look at each REIT’s debt metrics.
Both MLT and MIT have gearing ratios at a similar level which is around 40%.
MLT’s aggregate leverage ratio came in at 41.1% with an interest coverage ratio of 2.9 times.
While the leverage ratio is on the higher side, the manager is of the view that there is no material impact on the REIT’s risk profile.
Meanwhile, MIT’s aggregate leverage ratio remains lower at 37.3%, with an interest coverage ratio of 3.9 times.
MLT’s weighted average cost of debt is lower than MIT’s at 2.6% versus 3.0%.
Both REITs maintain sound profiles with manageable gearing and strong hedging.
But, MIT will emerge as the winner for this category given its lower leverage and stronger interest coverage, which provides it with financial flexibility and resilience.
Winner: MIT
Operating Metrics
There is also no clear winner when we look at both REITs’ operating metrics.
The demand for MLT’s facilities has been stable, maintaining a high portfolio occupancy of 96.1%.
Meanwhile, 2025 was a volatile year for MIT, with ongoing policy uncertainties weighing on leasing conditions and pulling the overall portfolio occupancy to 91.3%.
On the flip side, MIT’s weighted average lease expiry (WALE) was longer than its counterpart’s at 4.6 years versus 2.7 years. This acted as a defensive moat against the volatility of 2025.
MIT also recorded a higher rental reversion rate for its Singapore portfolio at 6.2%, compared with 3.9% for MLT.
Additionally, at a portfolio level, MLT’s overall reversion continues to be weighed down by negative rental reversions in China.
Winner: MLT (for occupancy), MIT (for WALE and reversions)
Distribution Yield
Finally, we come to the arguably most important metric for income investors: distribution yield.
MLT has a lower distribution yield at 5.38% versus 6.06% for MIT.
Winner: MIT
Get Smart: Not An Easy Decision
There is no easy way to determine which REIT is the better one.
Although MLT is more diversified and displays resilience at the operating level, investors need to be mindful that weaker regional currencies against the Singapore dollar continue to impact its financial performance.
Another aspect to look for is each REIT’s acquisition and divestment activity.
MIT tends to pursue larger and more frequent acquisitions as part of its capital recycling strategy.
Ultimately, if you seek defensive stability and exposure to the global AI boom, MIT looks like the sturdier bet.
However, for those looking to capture a cyclical recovery in regional consumption at a higher current yield, MLT offers an intriguing, albeit more volatile, opportunity.
Imagine receiving steady rent increases for more than two decades. It sounds unusual, but one healthcare REIT already has rental escalations locked in until around 2042. Income visibility like this is hard to find today. We break down how this REIT built such dependable cash flow in our FREE dividend report and how it could strengthen a retirement portfolio. Get the free report here.
Follow us on Facebook, Instagram and Telegram for the latest investing news and analyses!
Disclosure: Charlyn T. does not own shares in any of the companies mentioned. Royston Y. owns shares of Mapletree Industrial Trust.
