The manager of Mapletree Industrial Trust (MINT) has announced a distribution per unit (DPU) of 3.47 cents for the 2QFY2021/22 ended September, 11.9% higher y-o-y.
Gross revenue and net property income grew by 50.5% and 47.4% y-o-y to $155.6 million and $120.3 million respectively.
The strong performance was primarily driven by the consolidation of revenue and expenses from the 14 data centres in the US, as well as contributions from the US portfolio acquisition and 8011 Villa Park Drive, Richmond, Virginia.
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Correspondingly, the amount available for distribution to unitholders for 2QFY2021/22 increased by 21.3% y-o-y to $88.4 million.
The average overall portfolio occupancy for 2QFY2021/22 decreased to 93.7% from 94.3% in the preceding quarter. This is mainly due to the reduction in the average occupancy for the North American portfolio, which declined to 93.9% from 97.8% in the preceding quarter following the US portfolio acquisition, which had a lower average occupancy rate of 87.8%.
MINT completed the US portfolio acquisition on July 22 at a purchase consideration of US$1,320 million.
“Following the completion of the US portfolio acquisition, MINT’s assets under management has increased from $6.7 billion as at June 30 to $8.5 billion as at Sept 30, with data centres accounting for about 52.9%. We remain focused on retaining and working with our tenants amid signs of a gradual but uneven global economic recovery,” says Tham Kuo Wei, CEO of the manager.
Meanwhile, the average occupancy for the Singapore portfolio improved to 93.6% from 93.4% in the preceding quarter, as higher occupancies were registered for flatted factories and light industrial buildings.
The weighted average lease to expiry (WALE) for MINT’s overall portfolio increased to 4.3 years from 3.7 years as at June 30. This was due to the long WALE of the US acquisition portfolio of 7.6 years as at Sept 30.
MINT’s aggregate leverage ratio increased q-o-q from 31.0% to 39.6% due to the additional loans drawn to fund the US portfolio acquisition. About 57.7% of MINT’s total debt was hedged through interest rate swaps and fixed-rate borrowings. Its weighted average all-in funding cost for 2QFY2021/22 was 2.4%, with a healthy interest coverage ratio of 5.9 times.
Moving forward, MINT’s large and diversified tenant base with low dependence on any single tenant or trade sector will continue to underpin its portfolio resilience.
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Unitholders can expect to receive their quarterly DPU on Dec 3.
Units in MINT closed 1 cent or 0.36% lower at $2.73 on Oct 26.
Photo: MINT
