Mapletree Industrial Trust's property at Changi Business Park, Singapore. (Photo: REITsWeek)Mapletree Industrial Trust's property at Changi Business Park, Singapore. (Photo: REITsWeek)

Singapore-listed industrial REIT Mapletree Industrial Trust (MIT) (SGX:ME8U) posted a distribution per unit (DPU) of 2.51 Singapore cents for its 4Q FY13/14.

This brings the REIT’s total DPU for the financial year to 9.92 Singapore cents, representing a rise of 7.4% from the previous year.

The REIT has attributed the higher distribution figures to lower weighted all-in interest cost, positive rental reversions achieved for lease renewals and higher rents secured for new leases in its flatted factories, stack-up/ramp-up buildings and light industrial buildings.

Average portfolio passing rent for the REIT increased to SGD1.75 per square foot per month (psf/mth) from SGD1.73 psf/mth in the preceding quarter.

However average portfolio occupancy decreased from 92.5% to 91.3% in 4QFY13/14. This is mainly due to the increase in lettable area upon completion of the asset enhancement initiatives at Toa Payoh North 1 Cluster. The portfolio’s retention rate was higher at 81.8%, as compared to 66.3% in the preceding quarter.

MIT remains optimistic on Singapore’s industrial space prospects. The Ministry of Trade and Industry reported in its advance estimates that the Singapore economy grew by 5.1% year-on-year in the first quarter of 2014, lower than the 5.5% growth in the preceding quarter. However, the manufacturing sector grew at a faster pace of 8.0% year-on-year in 1Q 2014, as compared to 7.0% in the preceding quarter.

The faster pace of expansion was primarily due to a sharp rebound in bio-medical manufacturing and stronger growth in chemicals output in Singapore.

Units of MIT closed the trading day at SGD1.43 on the Singapore Exchange.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.