Mapletree Logistics Trust (MLT) saw its stock price plummet by 4.13% in early trading on Thursday, as investors reacted to the trust's disappointing fourth-quarter earnings report released the previous evening. The significant drop comes after a 3.4% gain on Wednesday, suggesting that the market had not fully priced in the extent of the earnings decline.

According to the report, MLT's distribution per unit (DPU) for the fourth quarter fell by a substantial 11.6% to S$0.01955. This sharp decrease was primarily attributed to lower revenue contribution from China and weak regional currencies, highlighting the challenges faced by the trust in its key markets. The financial headwinds were further evidenced by a 0.8% dip in gross revenue to S$179.6 million for the three months ended March 31, compared to the same period last year. Additionally, the trust's net property income (NPI) declined by 1.6% to S$152.8 million.

The market's negative reaction to MLT's performance underscores the concerns investors have about the trust's ability to maintain growth in the face of regional economic pressures. As MLT continues to navigate these challenges, stakeholders will be closely watching for any signs of improvement in the trust's financial metrics and its strategies to mitigate the impact of weak currencies and softening demand in key markets like China.

Mapletree Log Tr plunged 4.13% at 10:08 am, Apr 24th.