Mapletree Industrial Trust posts 2.9% fall in Q3 DPU to 3.39 Singapore cents
Elysia Tan
MAPLETREE Industrial Trust’s (MIT) distribution per unit (DPU) dropped by 2.9 per cent to 3.39 Singapore cents for its third quarter of FY2022/2023 ended Dec 31, 2022, from 3.49 Singapore cents in the corresponding year-ago period.
On a quarter-on-quarter basis, the DPU rose (*see amendment note) 0.9 per cent, according to a Thursday (Jan 26) bourse filing.
“While MIT’s operating metrics remained strong, we encountered headwinds from higher operating expenses and borrowing costs,” said Tham Kuo Wei, chief executive officer of its manager.
He added that MIT has, following the November 2022 completion of the first block of its Kallang Way high-tech industrial redevelopment project, “reached another milestone in (its) portfolio rejuvenation and rebalancing efforts”.
Gross revenue for the trust was up 5 per cent to S$170.4 million for the half-year period, from S$162.4 million in Q3 of FY2021/2022.
Net property income (NPI) grew 4.9 per cent on the year to S$128.8 million for the quarter, from S$122.7 million.
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The increases were mainly attributed to contributions from new leases across various clusters in MIT’s Singapore portfolio.
The amount available for distribution, however, declined 1.3 per cent year on year to S$88.4 million, from S$89.5 million previously.
Unitholders can expect to receive their quarterly DPU for Q3 on Mar 14, 2023. The distribution reinvestment plan will apply.
Average overall portfolio occupancy for Q3 FY2022/2023 increased to 95.7 per cent, from 95.6 per cent in the preceding quarter, said MIT’s manager.
It added that the average occupancy rate for its Singapore portfolio improved to 96.9 per cent, from 96.8 per cent in the second quarter, as higher occupancies were registered across most property segments.
The average occupancy rate for the North American portfolio remained the same at 93.1 per cent in Q3.
Positive rental revisions were achieved across most property segments in Singapore.
On its seven-storey purpose-built Kallang Way development, the manager said that the remaining blocks are slated for completion in the first half of 2023. To date, about 39 per cent of the redevelopment at 161, 163 and 165 Kallang Way’s net lettable area have been committed, it added.
Units of the trust closed S$0.02 or 0.8 per cent higher at S$2.39 on Thursday, before the results were released.
*Amendment note: A previous version of the story incorrectly stated that MIT’s Q3 DPU fell quarter on quarter by 0.9 per cent. It in fact rose by 0.9 per cent
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