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Net property income and gross revenue for 2QFY19/20 rose 13.3 percent and 10.5 percent to S$80.0 million and S$101.9 million respectively.
Mapletree Industrial Trust’s (MIT) distributable income for the Second Quarter Financial Year 2019/2020 covering 1 July 2019 to 30 September 2019 (2QFY19/20) grew 12.1 percent year-on-year (YoY) to S$63.5 million, revealed MIT’s manager Mapletree Industrial Trust Management Ltd. (Manager).
Net property income and gross revenue for 2QFY19/20 rose 13.3 percent and 10.5 percent to S$80.0 million and S$101.9 million respectively. Also, Distribution per Unit (DPU) for the same period grew 4 percent YoY to 3.13 cents.
The performance was mainly due to new revenue contributions from Mapletree Sunview 30A Kallang Place and 18 Tai Seng.
For the First Half Financial Year 2019/2020 covering 1 April 2019 to 30 September 2019 (1HFY19/20), distributable income amounted to S$126.7 million, an 11.6 percent increase over the S$113.6 million during the same period last year. DPU for 1HFY19/20 grew 3.7 percent YoY to 6.23 cents.
The improvement was brought about by higher net property income coming from the Singapore Portfolio and income contribution from the 40 percent interest of MIT in the portfolio of 14 data centres in the US.
An advanced distribution of 2.93 cents per unit under the period of 1 July 2019 to 25 September 2019 was paid on 21 October 2019 to Unitholders. The remaining DPU of 0.20 cents for 26 September 2019 to 30 September 2019 will be payable along with the Third Quarter Financial Year 2019/2020 distribution covering 1 October 2019 to 31 December 2019.
“Contributions from the acquisitions and development projects are expected to underpin MIT’s steady growth profile,” said Tham Kuo Wei, CEO of the Manager.
“We have continued our shift towards higher-specification industrial space with the recent acquisition of 13 data centres in North America and the ongoing redevelopment of the Kolam Ayer 2 Cluster. These strategic initiatives will help in building a more resilient portfolio and delivering sustainable growth to Unitholders.”
For 2QFY19/20, average portfolio occupancy was at 90.5 percent, which was less than the 90.8 percent in the preceding quarter.
Singapore Portfolio occupancy dropped marginally to 90.2 percent in 2QFY19/20 compared to 90.5 percent in 1QFY19/20. The US Portfolio occupancy rate remained at 97.4 percent. This was mainly driven by the lower occupancies at Stack-up/Ramp-up Buildings and Light Industrial Buildings segments.
Weighted average lease to expiry for the Overall Portfolio grew quarter-on-quarter from 3.4 years to 3.6 years as at 30 September 2019, because of the start of the 25-year lease of Equinix Singapore at 7 Tai Seng Drive.
MIT and Mapletree Investments Pte Ltd, meanwhile, formed a joint venture to acquire 10 Powered Base Building data centres from Digital Realty for around $557.3 million (S$774.2 million).
The joint venture will also enter into another joint venture with Digital Realty to invest in three Digital Realty Turn-Key Flex hyper-scale data centres, for a purchase consideration of around $810.6 million (S$1,126.1 million).
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
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