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Mapletree Industrial Trust saw its distribution per unit (DPU) climb eight percent to 5.52 cents in 1H 2015/2016 while its distributable income increased by 10.2 percent to S$97.1 million.
Credit Suisse noted that revenue grew 5.1 percent year-on-year due to contribution from Equinix build-to-suit (BTS) as well as higher rents and occupancies (excluding stack up). Net property income increased 7.4 percent on the back of lower marketing and utility expenses, it said.
On a quarterly basis, DPU and distributable income increased 7.3 percent and 7.7 percent to 2.60 cents and S$45.4 million, respectively, in Q2.
Revenue rose 6.2 percent to S$82.7 million, while net property income jumped 8.6 percent to S$61 million.
The trust plans to spend S$77 million on asset enhancement initiatives (AEIs) at “Kallang Basin 4 Cluster which will include the development of a new 11-storey hi-tech building on an existing open-air car park, and improvement works to existing buildings,” said Credit Suisse.
“Completion is expected in Q4 2017, and we have factored in [a] yield on cost of about eight percent. BTS redevelopment at Telok Blangah Cluster (S$226 million cost, 100 percent pre-leased to HP, 10.5+5+5 years lease with annual step-ups) is still slated to complete 2H 2016 and 1H 2017 in phases with foundation works now completed.”
With this, Credit Suisse maintained an “outperform” rating for the trust – stable with growth from AEI/BTS projects.
Image: One of Mapletree Industrial Trust’s properties, The Strategy – a two-tower development at the International Business Park in Jurong. (Source: MIT website)
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg.
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