The final days of September were eventful for three companies with Temasek backing.

Mapletree Logistics Trust (SGX: M44U), also known as MLT, was the first to act.

On 21 September 2026, it reached an agreement to divest a mature logistics facility in Shanghai.

Just one day later, Seatrium Limited (SGX: 5E2) announced it was doubling its share repurchase plan to S$200 million.

Keppel Ltd (SGX: BN4) then followed on 23 September 2026, confirming it was in discussions with StarHub regarding a potential transaction involving its telecommunications arm, M1.

Temasek, a worldwide investment firm based in Singapore, owned roughly 36% of Seatrium and approximately 21% of Keppel as of 31 March 2026.

Its deemed stake in MLT is held via Mapletree Investments, which Temasek fully owns and which in turn controls MLT's manager.

Can MLT maintain its distribution while divesting assets?

MLT holds 175 logistics properties spanning nine Asia-Pacific markets, with assets under management (AUM) of S$13.1 billion as of 30 June 2026.

For the quarter ending 30 June 2026 (1QFY2026/2027), gross revenue increased 0.8% year on year (YoY) to S$178.9 million.

Net property income (NPI) grew at a faster pace, rising 2% to S$156.4 million.

Distribution per unit (DPU) climbed 0.2% YoY to S$0.01816.

Weaker yen, won and Hong Kong dollar weighed on the headline figures.

Excluding those currency effects, gross revenue and NPI would have increased 2.0% and 3.1% respectively.

Portfolio rental reversion was 0.9%, or 2.3% when China is excluded.

Occupancy dipped slightly to 96.4% from 96.9% three months prior.

So what is the rationale for selling the Shanghai facility?

MLT aims to refresh its portfolio.

It acquired Mapletree Northwest Logistics Park in 2008 and will now divest it for RMB323.0 million (approximately S$61.3 million), in line with the property's 31 March 2026 valuation.

MLT fared better in July, when it agreed to sell 39 Changi South Avenue 2 at a 20.3% premium to valuation.

The transaction is modest, representing about 0.5% of AUM, and the manager anticipates no material effect on net asset value or NPI.

MLT is targeting completion by 3QFY2027/2028.

Aggregate leverage was 40.5% as of 30 June 2026.

What would divesting M1 mean for Keppel?

Nothing has been finalised, and both companies indicated a deal might not proceed.

A merger would shrink Singapore's mobile network operators from four to three, making regulatory clearance a significant obstacle.

Notably, Temasek is also a controlling shareholder of StarHub.

M1 is part of Keppel's Non-Core Portfolio for Divestment, which the group intends to substantially monetise by 2030.

That portfolio recorded a S$375 million loss in the first half of 2026 (1H2026), driven by legacy rig impairments and the cancelled M1 sale to Simba.

As a result, Keppel's net profit attributable to shareholders dropped 59% YoY to S$154.7 million.

The remainder of Keppel presents a very different picture.

Excluding the non-core portfolio, net profit rose 25% to S$530 million, while recurring income increased 13% YoY to S$467 million.

Keppel maintained its interim dividend at S$0.150 per share.

Free cash flow is the lifeblood of dividends, so where did Keppel's cash originate?

Operating cash flow declined to S$96.8 million from S$219.4 million a year earlier.

Yet Keppel still reported a free cash inflow of S$570 million, largely from S$1.1 billion of divestment proceeds and dividends received.

Borrowings were S$11.3 billion against cash of S$2.2 billion.

Keppel has announced approximately S$1.7 billion of asset monetisation this year, against a full-year target of S$2 billion to S$3 billion.

An M1 sale would help bridge that gap.

Is Seatrium able to fund a larger buyback?

Seatrium concluded its previous S$100 million buyback on 1 September 2026.

The new programme is double the size, funded from existing cash.

Its share purchase mandate limits repurchases to 2% of issued shares.

The profit line appears impressive.

For 1H2026, revenue rose 4.7% YoY to S$5.6 billion, while revenue from rig building, shipbuilding and conversion grew 17.5% to S$4.2 billion.

Profit attributable to owners surged 158.3% to S$372.9 million, though part of that stemmed from a one-off S$171.7 million gain on disposing of non-core assets.

Cash flow is a different story.

Free cash flow was negative S$11.6 million, an improvement from negative S$31.9 million a year earlier.

The main drag was a S$1.6 billion build-up in contract assets, as Seatrium recognised revenue ahead of billings.

Cash stood at S$1.7 billion against total debt of S$2.4 billion, excluding lease liabilities. The new buyback equals roughly 12% of that cash pile.

Seatrium pays dividends annually, so it declared no interim dividend for 1H2026.

Management expects FY2026 net profit to be materially higher than FY2025's, supported by those one-off gains.

Follow each payout back to where it comes from

A buyback or dividend endures only as long as the cash underpinning it.

MLT divests older buildings to acquire newer ones, and its tenants' rent continues to sustain the DPU.

Keppel and Seatrium depend more heavily on one-off items.

Divestments provided most of Keppel's free cash inflow, and Seatrium is repurchasing shares before its free cash flow has turned positive.