Higher rents helped Mapletree Industrial Trust offset lower occupancy levels and post a positive set of numbers for the fourth quarter.
Distribution per unit (DPU) came in at 2.88 cents, up 2.5 per cent from the same period a year ago, while gross revenue was $87.8 million, up 4.5 per cent.
This was due mainly to higher rental rates at the trust's flatted factories, high-tech buildings and stack-up/ramp-up buildings, which made up for lower portfolio occupancy a year ago.
Revenue contribution from phase one of the build-to-suit (BTS) project for Hewlett-Packard Singapore from mid-December last year also lifted the top line in the three months to March 31.
Coupled with lower property expenses, this brought net property income to $65.97 million, up 6.4 per cent from $62 million a year earlier.
The amount available for distribution was $51.8 million, up 2.7 per cent from $50.4 million a year ago.
AT A GLANCE
$87.8 million (+4.5%)
$51.8 million (+2.7%)
2.88 cents (+2.5%)
This was largely due to higher net property income, but partially offset by higher borrowing costs and manager's management fees.
DPU for the full year was 11.39 cents, up 2.2 per cent.
Fourth-quarter average portfolio occupancy rose marginally to 93.1 per cent from 92.1 per cent in the preceding quarter. This was attributed to the full-quarter effect of the lease commencement of phase one of the BTS development for Hewlett-Packard.
Mapletree Industrial Trust's 86 investment properties were valued at $3.75 billion as at March 31.
This represents an increase of $190.8 million over the previous valuation a year ago, due to a portfolio revaluation gain of $70.2 million and capitalised cost of $120.6 million from development and improvement works.
The Reit manager said that despite positive data about the manufacturing sector in Singapore, the business environment remains uncertain amid global trade uncertainties and rising interest rates.
"The continued supply of competing industrial space and movement of tenants are expected to exert pressure on rental and occupancy rates," it said.
Mr Tham Kuo Wei, chief executive officer of the Reit manager, said: "We expect the high-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."
Results were announced after trading hours. The counter fell half a cent or 0.28 per cent to $1.795 yesterday.