Mapletree Industrial Trust's Q1 DPU rises 3.3%
Singapore
MAPLETREE Industrial Trust's (MIT) distribution per unit for the fiscal first quarter rose 3.3 per cent to 3.1 Singapore cents from three cents a year ago, according to its financial results posted on Tuesday.
Net property income (NPI) 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.
Total amount available for distribution to unitholders increased 11.1 per cent to S$63.2 million, as a result of higher NPI and income contribution from MIT's 40 per cent interest in a portfolio of 14 data centres in the US. Gross revenue rose 8.8 per cent to S$99.6 million from S$91.5 million a year ago.
Average portfolio occupancy improved to 90.8 per cent in Q1 from 90.2 per cent in the previous quarter. About 12.3 per cent of leases by gross rental income are due for renewal in FY19/20.
Unitholders can expect to receive their DPU payout on Aug 28.
MIT's upgraded data centre at 7 Tai Seng Drive obtained its temporary occupation permit on July 3, and has been fully leased to Equinix Singapore for an initial lease term of 25 years with annual rental escalations.
The trust manager also announced on July 10 that it will redevelop the Kolam Ayer 2 Cluster into a high-tech industrial precinct at a total project cost of about S$263 million.
The proposed redevelopment will increase the utilised plot ratio to 2.5 from 1.5 and gross floor area to about 865,600 square feet.
In a statement, MIT's manager 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 thanks to well-timed investments in high-tech buildings.
"The Hi-Tech Buildings segment will continue to underpin our efforts to strengthen MIT's growth profile," he said.
MIT units closed at S$2.30 on Tuesday before the results were announced, down two cents or 0.9 per cent.
