Mapletree Industrial Trust posts 2.4% rise in quarterly DPU

US data centres acquired by Mapletree Industrial Trust and Mapletree Investments. MIT was boosted by contributions from new properties in the fourth quarter.
US data centres acquired by Mapletree Industrial Trust and Mapletree Investments. MIT was boosted by contributions from new properties in the fourth quarter.PHOTO: MAPLETREE

Contributions from new properties boosted industrial landlord Mapletree Industrial Trust (MIT) in the fourth quarter.

It recorded a 2.4 per cent year-on-year rise in distribution per unit (DPU) to 2.95 cents for the three months to March 31.

This was underpinned by returns from a build-to-suit project for HP Singapore and a 40 per cent interest in 14 data centres in the United States, it reported yesterday.

Gross revenue rose 2.9 per cent from a year earlier to $90.39 million while net property income was up by the same to $67.88 million.

This came on the back of the HP Singapore project, which was partially offset by lower occupancies across all the property segments except for light industrial buildings.

"We continued to execute our strategy to grow the hi-tech buildings segment," said Mr Tham Kuo Wei, chief executive of the trust manager.

  • AT A GLANCE

  • Gross revenue:

    $90.4 million (+2.9%)

  • Net property income:

    $67.9 million (+2.9%)

  • Distribution per unit:

    2.95 cents (+2.4%)

"Our first overseas acquisition of 14 data centres in the United States and the progressive completion of development projects in Singapore will enhance the portfolio resilience and support our growth momentum."

The development of a data centre at 12 Sunview Drive in Singapore is on track for completion in the second half of this year and is already 100 per cent committed by a centre operator.

MIT's assets under management grew from $3.75 billion as at March 31, 2017 to $4.32 billion as at March 31 this year.

This was due in part to its acquisition of the 14 US data centres and an increase of $159.7 million in its Singapore portfolio.

This came in part from a portfolio revaluation gain of $65.5 million and capitalised cost of $111.8 million from development and improvement works.

DPU rose 3.2 per cent to 11.75 cents for the full year.

Gross revenue increased 6.7 per cent to $363.23 million, thanks mainly due to contribution from HP and pre-termination compensation sum from Johnson & Johnson, but partially offset by lower portfolio occupancy.

Net property income improved by 8.1 per cent to $277.6 million.

Average portfolio occupancy stood at 90 per cent in the fourth quarter, down from 90.5 per cent in the preceding quarter, the Reit manager said.

The drag came from its Singapore portfolio of 85 industrial properties, where occupancy fell to 89.6 per cent in the fourth quarter from 90.1 per cent in the preceding three months, given an increase in leasable area on completion of improvements at 30A Kallang Place.

The Reit manager said it has committed leases for 40.2 per cent of the additional net lettable area at 30A Kallang Place.

MIT units closed one cent higher at $2.02 yesterday.

A version of this article appeared in the print edition of The Straits Times on April 24, 2018, with the headline 'Mapletree Industrial Trust posts 2.4% rise in quarterly DPU'. Print Edition | Subscribe