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Mapletree Industrial Trust Q1 DPU rises 3.3%

MAPLETREE Industrial Trust's (MIT) distribution per unit (DPU) for the fiscal first quarter rose 3.3 per cent to 3.10 Singapore cents from three cents a year ago, according to its financial results posted on Tuesday.

Net property income for the three months ended June 30 rose 12.2 per cent to S$77.9 million, compared with S$69.5 million in the first quarter of the previous year. MIT's manager attributed the performance to new revenue contributions from 18 Tai Seng, 30A Kallang Place and Mapletree Sunview 1.

Gross revenue rose 8.8 per cent to S$99.6 million from S$91.5 million a year ago, while total amount available for distribution to unitholders increased 11.1 per cent to S$63.2 million.

Unitholders can expect to receive their DPU payout on Aug 28.

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In a media statement, it said business sentiment among local companies has edged up after three consecutive quarters of decline, but companies remain cautious, noting the mounting downside economic risks from US-China trade tensions and an uncertain outlook for global growth.

"A lukewarm manufacturing sector is also expected in the third quarter of 2019, with economic uncertainties and global trade issues posing particular challenges for the electronics and precision engineering sectors," it said.

Tham Kuo Wei, chief executive officer of MIT's manager, said the "robust financial results" were due to well-timed investments in high-tech buildings.

He added: "In Singapore, we will be redeveloping the Kolam Ayer 2 Flatted Factory Cluster into a high-tech industrial precinct to unlock value for the portfolio and utilise untapped plot ratio. The Hi-Tech Buildings segment will continue to underpin our efforts to strengthen MIT's growth profile."

MIT units closed at S$2.30 on Tuesday before the results were announced, down two Singapore cents or 0.86 per cent.