Mapletree Industrial announces 1.4% rise in 2Q DPU to 2.83 cents, aided by lower expenses

SINGAPORE (Oct 25): The manager of Mapletree Industrial Trust (MIT) has declared a DPU of 2.83 cents for 2Q ended Sept, 1.4% higher than a year ago, thanks to a steeper fall in expenses.

Gross revenue in 2Q rose 1.8% to S$84.2 million (RM252 million), lifted by higher rental rates secured across all property segments and higher occupancy achieved at hi-tech buildings.

Property expenses fell 5.2% to S$20.6 million.

Distributable income came in at S$50.6 million, up 3.4% from a year ago.

Average portfolio passing rent remained the same as the previous quarter at S$1.92 psf per month.

Average portfolio occupancy decreased to 92.5% from 93.0% in the preceding quarter as lower occupancies were registered for Flatted Factories, Business Park Buildings and Stack-up/Ramp-up Buildings segments.

MIT's manager says the first of two hi-tech buildings of the BTS development for Hewlett-Packard obtained its Temporary Occupation Permit on Oct 21 (Phase One). The second building is on track for completion in the second quarter of 2017 (Phase Two).

Hewlett-Packard has committed to lease the entire BTS facility for an initial period of 10.5 years, with an option to renew for two additional five-year terms.

MIT’s balance sheet remained robust with a healthy interest cover ratio of 8.0 times in 2Q.

Aggregate leverage ratio stood at 29%.

In its outlook, MIT says the business environment is expected to remain challenging. — theedgemarkets.com.sg