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Mapletree Industrial Trust’s (MIT) distributable income was up 9.5 percent year-on-year to S$50.31 million for the third quarter, the trust’s manager said in an SGX filing dated Tuesday, 26 January.
The increase was attributed to the contribution from the completed build-to-suit (BTS) data centre at 26A Ayer Rajah Crescent (pictured), as well as stable occupancies and rental rates across various segments.
The trust’s distribution per unit (DPU) also rose 5.6 percent to 2.82 cents. Gross revenue was up 6.6 per cent to S$83.25 million while net property income rose 6.7 per cent to S$61.88 million.
Average portfolio occupancy rose 0.9 percent—the highest in 10 quarters—from 93.8 percent in the second quarter to 94.7 percent in the third quarter, while average portfolio passing rent increased to S$1.89 per sq ft per month from S$1.88 per sq ft per month in the preceding quarter.
According to the MIT, the increase was driven by “positive rental revisions for renewal leases and higher rental rates secured for new leases at the flatted factories and business park buildings during the quarter.”
With this, swiss financial institution Credit Suisse maintained its outperform rating for MIT, citing the trust’s stable growth from asset enhancement initiatives and BTS projects. “MINT offers an attractive FY17 yield of 7.5 percent while the phased completion of the HP BTS redevelopment will support DPU growth.”
Meanwhile, MIT management chief executive officer Tham Kuo Wei said: “Looking ahead, the weakening global economic outlook, rising interest rate and large supply of industrial space in Singapore would exert downward pressure on rental revenue.
“We remain focused on retaining tenants and mitigating the effects of upward cost adjustments, while continuing to be prudent in capital management.”
On Tuesday, MIT’s units closed down 1.5 cents to S$1.495.
Image source: Mapletree
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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