Singapore-listed industrial REIT, Mapletree Industrial Trust, announced on 24 April that it has achieved a DPU of 2.88 Singapore cents for its 4Q 16/17, 1.8% higher than the 2.83 cents achieved in the corresponding period of the previous financial year.

Accordingly full-year DPU for FY16/17 came in at 11.39 cents, 2.2% higher than the 11.15 cents paid out in the previous financial year.

Gross revenue and net property income for 4Q 16/17 both increased by 4% to SGD87.8 million (USD62 million) and SGD66 million respectively, while distributable income inched by 1.3% to SGD51.6 million.

“[Mapletree Industrial Trust] delivered higher DPU in FY16/17 amid the uncertain business environment as all property segments registered higher rental rates coupled with initial contribution from phase one of the [build-to-suit - BTS] development for Hewlett-Packard, and lower property expenses”, said Tham Kuo Wei, CEO of the REIT’s manager.

“We expect the hi-tech buildings segment to be a significant growth driver as we progressively complete development projects including the recently announced BTS data centre which has commenced construction”, he added.

The REIT’s portfolio occupancy for 4Q 16/17 increased marginally to 93.1% from 92.1% in the preceding quarter, while gearing has similarly improved to 29.2% from 29.4%.

However the REIT warned that the business environment remains uncertain despite positive manufacturing data in Singapore.

“The continued supply of competing industrial space and movement of tenants are expected to exert pressure on rental and occupancy rates”, said the REIT, adding that it will focus on tenant retention to maintain a stable portfolio occupancy.

Units of Mapletree Industrial Trust last changed hands on the Singapore Exchange at SGD1.795.