SINGAPORE (July 25): Mapletree Industrial Trust Management, the manager of Mapletree Industrial Trust (MIT), has declared a DPU of 2.92 cents for 1QFY17/18 ended June, a 2.5% increase from the previous year when it reported a DPU of 2.85 cents.
Distributable income also increased 2.7% in 1QFY17/18 to $52.9 million from $51.5 million the previous year.
Tham Kuo Wei, Chief Executive Officer of the manager, says “The year-on-year growths in distributable income and DPU were driven mainly by revenue contribution from Phase One of the BTS development for HP.”
1Q17/18 gross revenue rose 15.6% to $88.8 million for 1Q17/18 from $84.1 million a year ago.
Net property income stood at $68.2 million, a 6.9% increase from $63.8 million the year before.
MIT reported cash and cash equivalents of $39.07 million in 1Q17/18.
Average portfolio passing rent increased marginally to $1.95 psf per month in 1QFY17/18 from $1.94 psf/mth in the preceding quarter.
Average portfolio occupancy for 1QFY17/18 fell to 92.6% from 93.1% in the preceding quarter.
In June, the manager completed its largest BTS development for HP at 1 and 1A Depot Close.
The divestment of 65 Tech Park Crescent was successfully completed on July 20, in line with the manager’s strategy of proactively managing its assets to add value to the portfolio.
The sale price of $17.7 million was 34% higher than MIT’s acquisition price of $13.2 million.
The proceeds from the divestment will be used to fund committed development projects.
Following the completion of this divestment, MIT’s portfolio comprises 85 properties with total book value of $3.8 billion.
As at June 30, about 72.8% of MIT’s gross borrowings had been hedged through interest rate swaps and fixed rate borrowings.
The weighted average all-in funding cost increased to 2.8% in 1QFY17/18 from 2.7% in the preceding quarter, due to the full quarter effect of the issuance of $100 million medium term notes towards the end of the last quarter on March 23.
Looking forward, the manager says it will continue to focus on tenant retention to maintain a stable portfolio occupancy.
This is a response to the uncertain business environment despite positive signs from the manufacturing sector and the pressure on rental and occupancy rates due to continued supply of competing industrial space and movement of tenants.
Units in MIT closed at $1.88 on Tuesday.
