Mapletree Industrial Trust (MIT) (SGX:ME8U) announced on 20 October that it has achieved distributable income of SGD48.9 million for its 2Q FY15/16 that spanned 1 July to 30 September 2015.
The amount represents a year-on-year increase of 7.7% from the SGD45.4 million recorded for the same period in the previous financial year. Correspondingly distribution per unit (DPU) for the quarter increased to 2.79 Singapore cents, 7.3% higher than the DPU of 2.60 cents for 2Q FY14/15.
The Singapore-listed industrial REIT has attributed these increases to higher occupancies and stable rental rates from existing properties as well as the contribution from the completed build-to-suit data centre at 26A Ayer Rajah Crescent.
Average portfolio occupancy from 93.5%to 93.8% from 93.5% quarter-on-quarter while average portfolio passing rent increased to SGD1.88 per square foot per month (psf/mth) from SGD1.86 psf/mth.
“This was mainly attributable to new leases secured in the hi-tech buildings and business park buildings segments which raised the overall portfolio occupancy and passing rental rate”, said the REIT in a statement on the results.
MIT has warned that Singapore’s manufacturing sector contracted by 6.0% year-on-year in 3Q 2015 following a 4.9% decline in the previous quarter. “Rents for prime multi-user conventional industrial space are projected to ease further in 4Q 2015, while business park rents could experience a slight dip”, it said.
“However, rents of independent high-specs industrial premises could remain stable for the rest of the year on the back of limited supply”, the REIT added.
Units of Mapletree Industrial Trust slipped by 1.5% and the end of the trading day on the Singapore Exchange to close at SGD1.50.