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

Mapletree Industrial Trust announced on 26 July that it has achieved a distribution per unit (DPU) of 2.85 Singapore cents for its 1Q FY16/17, 4.4% higher than the 2.73 cents recorded for 1QFY15/16.

Gross revenue and net property income (NPI) for the period increased by 0.1% and 2.9% year-on-year to SGD84 million and SGD63.8 million respectively.

“The increase was attributable to higher rental rates achieved across all property segments as well as improvement in occupancies at hi-tech buildings and business park buildings”, said the REIT in its statement on the results.

However the Singapore-listed industrial REIT’s average portfolio occupancy fell to 93.0% from 94.6% in the preceding quarter due to lower retention rates across all property segments except for flatted factories.

The REIT’s average portfolio passing rent increased to SGD1.92 per square foot per month (psf/mth) from SGD1.90 psf/mth in the preceding quarter.

“The increase was driven by positive average rental revisions for renewal leases and higher average rental rates secured for new leases during the quarter”, said the REIT.

Mapletree Industrial Trust’s weighted average all-in funding cost was at 2.5% with an interest cover ratio of 8.7 times in 1Q FY16/17.

“The low aggregate leverage ratio of 28.2% will provide Mapletree Industrial Trust financial flexibility for growth opportunities”, it added.

On its outlook for the quarters ahead, the REIT expects the business environment to remain subdued given global uncertainties and the large impending supply of industrial space in Singapore.

Units of Mapletree Industrial Trust finished the trading day 3.2% higher from its previous close on the Singapore Exchange to end at SGD1.755.

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.