Mapletree Industrial Trust's Tata Communications Exchange at Tai Seng Street, Singapore.Mapletree Industrial Trust's Tata Communications Exchange at Tai Seng Street, Singapore. (Photo: REITsWeek)

Singapore-listed industrial REIT, Mapletree Industrial Trust, announced on 25 April that it has recorded a distribution per unit (DPU) of 2.81 Singapore cents for its 4Q FY15/16, an increase of 6.0% over the 2.65 cents paid in the corresponding period of the last financial year.

Distributable income for the quarter was SGD50.38 million, an increase of 7.83% compared to the SGD46.73 million paid in the corresponding period of FY14/15.

These came on the back of a 5.7% and 4.2% improvement year-on-year in gross revenue and net property income (NPI) that came in at approximately SGD84 million and SGD62 million respectively.

DPU for full financial year (FY15/16) increased to 11.15 cents, 6.9% higher than the DPU of 10.43 cents for FY14/15.

“This was largely driven by the contribution from the completed build-to-suit data centre at 26A Ayer Rajah Crescent and resilient portfolio performance”, said Tham Kuo Wei, CEO of the REIT’s manager, in his statement on the results.

“The ongoing redevelopment at the Telok Blangah Cluster and commencement of the asset enhancement initiative at Kallang Basin 4 Cluster underscore our commitment in growing the Hi-Tech Buildings segment, which will enhance Mapletree Industrial Trust’s growth profile in the longer term”, he added.

The REIT’s average portfolio occupancy for 4Q FY15/16 fell marginally to 94.6% from 94.7% in the preceding quarter although average portfolio passing rent increased to SGD1.90 per square foot per month from SGD1.89 per square foot per month from the previous quarter.

Portfolio weighted average lease expiry (WALE) by gross rental income as at 31 March 2016 was 2.8 years. The REIT’s total debt for the quarter was at SGD1,022.4 million with an aggregate leverage ratio of 28.2% and average funding cost of 2.5%.

“The business environment is expected to remain challenging, given the muted global economic outlook and large supply of industrial space in Singapore”, said the REIT in a statement on the results.

“In addition, the ongoing economic restructuring in Singapore is expected to result in the cost increase of outsourced service contracts. These may exert pressure on rental and occupancy rates, while property expenses are expected to increase”, the REIT added.

Units of Mapletree Industrial Trust finished the trading day flat from its previous close on the Singapore Exchange to end at SGD1.64.

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.