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

Singapore-listed Mapletree Industrial Trust has reported DPU of 2.83 Singapore cents for its 2Q FY16/17, 1.4% higher than the 2.79 cents recorded in the corresponding period of the previous financial year.

Gross revenue for the quarter came in 1.8% higher year-on-year at SGD84.2 million (USD60.3 million), while net property income increased by 4.3% to SGD63.6 million.

Subsequently distributable income for the quarter was SGD50.6 million, a 3.4% increase over the SGD48.9 million recorded for 2Q 15/16.

The REIT has attributed its results mainly to higher rental rates across all its property segments and higher occupancy at its high-tech buildings, which will be further bolstered by contribution from Phase One of the build-to-suit (BTS) development for Hewlett-Packard that was recently completed.

“Its revenue contribution as [Mapletree Industrial Trust’s] largest tenant will help to mitigate the negative impact of the weak Singapore industrial market on the portfolio”, said Tham Kuo Wei, CEO of the REIT’s manager.

However the industrial REIT’s average portfolio occupancy decreased to 92.5% from 93.0% in the preceding quarter due to lower occupancies at its flatted factories, business park buildings, and stack-up/ramp-up properties.

“The business environment is expected to remain challenging in view of the uncertain macroeconomic environment and large impending supply of industrial space in Singapore”, said the REIT, adding that it will remain focused on tenant retention to maintain its portfolio occupancy.

Units of Mapletree Industrial Trust last changed hands on the Singapore Exchange at SGD1.72.

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.