SINGAPORE (Oct 24): The manager of Mapletree Industrial Trust (MIT) has declared distribution per unit (DPU) of 3.00 cents for the 2Q ended September, a 6.0% increase from 2.83 cents a year ago.
Excluding a pre-termination compensation of $3.1 million from Johnson & Johnson, DPU for 2QFY17/18 would have remained flat year-on-year at 2.83 cents.
Distributable income for the quarter grew 6.8% to $54.0 million, from $50.6 million a year ago.
Gross revenue increased by 9.9% to $92.6 million in 2QFY17/18, from $84.2 million a year ago.
This was mainly driven by revenue contribution from the build-to-suit project for HP Singapore and the pre-termination compensation Johnson & Johnson, partially offset by lower portfolio occupancy.
Property operating expenses rose 6.4% to $21.9 million, mainly attributed to higher marketing commission, property maintenance expenses, and property taxes.
Consequently, net property income grew 11.1% to $70.7 million in 2QFY17/18, from $63.6 million a year ago.
Average portfolio occupancy stood at 90.4% in 2Q, compared to 92.6% in the preceding quarter.
The lower occupancy was partly attributed to the short time gap between the completion of the Phase Two of the BTS project for HP and its lease commencement on Sept 1, 2017.
Leases due for renewal in FY17/18 were reduced to 8.4% by gross rental income as at end September, from 20.4% in the preceding quarter.
As at end September, cash and cash equivalents stood at $39.3 million.
“The portfolio continues to face headwinds from the supply of competing industrial space and exit of tenants,” says Tham Kuo Wei, chief executive officer of the manager.
“Our focus will be on retaining tenants while we expect the contribution from development projects including the BTS development for HP to be the main growth driver for the Singapore portfolio,” Tham adds.
In a filing to SGX on Tuesday, MIT says the continued supply of competing industrial space and exit of tenants are expected to exert pressure on rental and occupancy rates.
Units of Mapletree Industrial Trust closed 1 cent higher at $1.96 on Tuesday.
