Mapletree Industrial Trust Q2 DPU up 11.9% to 3.47 Singapore cents on US income lift

MAPLETREE Industrial Trust's (MIT) second-quarter distribution per unit (DPU) rose to 3.47 Singapore cents from 3.1 cents a year ago.

Income distributable to unitholders grew 21.3 per cent to S$88.4 million for the three months to Sep 30, following a boost in revenue from assets in the US.

Net property income climbed 47.4 per cent to S$120.3 million as gross revenue rose 50.5 per cent to S$155.6 million.

The increase came on the consolidation of revenue from 14 US data centres previously held by joint venture Mapletree Redwood Data Centre Trust, 29 data centres in the US acquired for US$1.32 billion, and a data centre in Virginia.

Overall, average portfolio occupancy in Q2 fell to 93.7 per cent from 94.3 per cent in the preceding quarter after a reduction in occupancy for the North American portfolio.

The average occupancy rate for the portfolio declined to 93.9 per cent from 97.8 per cent following the acquisition of the 29 data centres, which had a lower average occupancy rate of 87.8 per cent.

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Occupancy for the Singapore portfolio improved to 93.6 per cent from 93.4 per cent as higher occupancies were registered for flatted factories and light industrial buildings.

The weighted average lease to expiry (WALE) for the overall portfolio increased to 4.3 years as at Sep 30, from 3.7 years as at June 30. This was due to the long WALE of the 29 US data centres of 7.6 years as at end-September.

The aggregate leverage ratio increased quarter on quarter from to 39.6 per cent from 31 per cent after loans drawn to fund the acquisition in the US.

"Following the completion of the US portfolio acquisition, MIT's assets under management increased from S$6.7 billion as at June 30, 2021, to S$8.5 billion as at Sep 30, 2021, with data centres accounting for about 52.9 per cent.

"We remain focused on retaining and working with our tenants amid signs of a gradual but uneven global economic recovery," said Tham Kuo Wei, chief executive officer of MIT's manager.

The books close on Nov 3. The DPU will be paid out on Dec 3.

MIT's units closed at S$2.73 on Tuesday, down S$0.01 or 0.37 per cent, before the results were released.