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

Mapletree Industrial Trust (MIT) has reported a distribution per unit (DPU) of 3.08 Singapore cents for its 4Q 18/19, 4.4% higher from the 2.95 cents achieved in the corresponding period of the previous financial year.

On a full-year basis, the industrial REIT’s DPU of 12.16 cents for FY18/19 represents an increase of 3.5%.

The REIT’s net property income (NPI) for the year was SGD287.8 million, 3.7% higher than the previous year.

MIT has attributed this mainly to contributions from development projects, and acquisitions in Singapore including Phase Two of the build-to-suit project for HP Singapore, 18 Tai Seng, and Mapletree Sunview 1.

Correspondingly, the REIT’s distributable income for its FY18/19 grew 7.4% year-on-year to SGD231.8 million.

MIT’s average portfolio occupancy increased to 90.2% in 4QFY18/19 from 88.2% in the preceding quarter.

Its Singapore portfolio occupancy improved to 89.8% in 4QFY18/19 from 87.7% in 3QFY18/19.

The REIT’s US portfolio occupancy rate remained unchanged at 97.4%.

MIT’s manager raised gross proceeds of about SGD201 million through a private placement in February 2019 to partly finance the acquisition of 18 Tai Seng.

The move has lowered its aggregate leverage ratio to 33.8% as at 31 March 2019.

MIT has warned that the upcoming supply of competing industrial space is expected to moderate market rents and occupancy rates.

“The manager remains focused on tenant retention to maintain a stable portfolio occupancy”, the REIT added.

MIT last changed hands on the Singapore Exchange at SGD2.08.

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.