Mapletree Industrial Trust reports 4.2% year-on-year gain in Q1 DPU to 3.49 cents

MAPLETREE Industrial Trust (MIT) : ME8U 0% reported a 4.2 per cent year-on-year gain in distribution per unit (DPU) to 3.49 cents in the first quarter of its financial year ended Jun 30, its manager said on Monday (Jul 25).

Sequentially however, its DPU was flat.

Net property income for Q1 rose 24 per cent year on year to S$129.9 million, while gross revenue grew 31 per cent to S$167.8 million.

The amount available for distribution to unitholders for Q1 FY22/23 increased 11.4 per cent year on year to S$92.1 million, mainly due to higher net property income partially offset by higher borrowing costs and manager’s management fees.

Unitholders can expect to receive their quarterly DPU for the second quarter on Sep 9.

Overall, MIT’s manager said the increases in Q2 were mainly driven by contribution from the acquisition of 29 data centres in the United States.

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“Despite the improvement of the operational performance in Singapore and North America, we expect headwinds in the coming quarters as inflation pressure will result in higher property operating expenses and interest expenses,” said Tham Kuo Wei, chief executive of the manager.

“During this volatile period, we will focus on cost-mitigating measures while looking for opportunities to improve the portfolio through proactive rejuvenation and rebalancing,” he added.

MIT’s property portfolio includes data centres in both Singapore and North America, as well as hi-tech buildings, business park buildings, flatted factories, stack-up and ramp-up buildings and light industrial buildings.

Average overall portfolio occupancy for Q1 increased to 95.3 per cent, from 94 per cent in the previous quarter, due to improved occupancies across all its property segments in Singapore and North America.

During the quarter, the manager divested a property at 19 Changi South Street 1 in Singapore for S$13 million as well as 19675 West Ten Mile Road in Southfield, Michigan for US$10 million.

The net proceeds will be used to fund committed investments, working capital requirements and reduce existing debt, according to the manager.

It now manages 85 properties in Singapore and 56 properties in North America, including 13 data centres held through a joint venture with Mapletree Investments.

MIT units rose 0.76 per cent, or S$0.02, to close at S$2.65 on Monday.