Higher occupancy at its high-tech buildings boosted second-quarter numbers at Mapletree Industrial Trust (MIT) and helped lift distribution per unit (DPU).
DPU rose 1.4 per cent to 2.83 cents for the three months to Sept 30 from the same period a year earlier, the trust manager said yesterday. This will be paid out on Nov 28.
Net property income increased 4.3 per cent to $63.6 million, while gross revenue inched up 1.8 per cent to $84.2 million.
Mr Tham Kuo Wei, chief executive of the trust manager, said the rise in DPU was "underpinned by higher rental rates secured across all property segments and higher occupancy achieved at (its) high- tech buildings".
He added that the "timely completion" of Phase 1 of the build-to-suit development for Hewlett-Packard "is a milestone in the trust's strategy" to grow the so-called "high-tech buildings segment".
"Its revenue contribution as the trust's largest tenant will help to mitigate the negative impact of the weak Singapore industrial market on the portfolio."
AT A GLANCE
GROSS REVENUE: $84.2 million (+1.8%)
NET PROPERTY INCOME: $63.6 million (+4.3%)
DISTRIBUTION PER UNIT: 2.83 cents (+1.4%)
The first Hewlett-Packard building - an 11-storey development with a gross floor area of about 421,000 sq ft - received its temporary occupation permit on Oct 21.
A second building is slated to be completed in the second quarter of 2017. The two blocks will have a gross floor area of 824,500 sq ft, with facilities for manufacturing, product and software development and offices.
Hewlett-Packard has committed to lease the entire facility for an initial period of 101/2 years, with an option to renew for two additional five-year terms.
MIT's portfolio of 85 properties has a total gross floor area of about 19.7 million sq ft and a valuation of $3.56 billion as at March 31.
Its average portfolio occupancy during the quarter fell from 93 per cent in the previous quarter to 92.5 per cent as there were lower occupancies for places like flatted factories and business park buildings.
Net asset value per unit was $1.37 as at Sept 30, the same as at March 31.
The trust manager expects the business environment to remain challenging "in view of the muted global outlook and large impending supply of industrial space in Singapore" as this is "likely to exert pressure on occupancy and rental rates".
The trust's units closed 2.5 cents higher at $1.74.