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.

The REIT’s portfolio weighted average lease expiry (WALE) by gross rental income for the quarter is at 3.1 years while aggregate leverage as at 30 September 2015 is at 27.9%.

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.