Mapletree Industrial Trust reported on Tuesday that its net property income for the fiscal third quarter rose 1.4 percent on-year to S$71.88 million.
Gross revenue for the quarter ended 31 December rose 2.3 percent on-year to S$93.57 million, it said in a filing to SGX after the market close on Tuesday.
The increases in gross revenue and net property income were on the contribution from Phase One of a build-to-suit project for HP Singapore for a full quarter after the rent-free period expired, and on new contributions from Mapletree Sunview 1 and 30A Kallang Place, the trust said.
That was partially offset by lower occupancy in the flatted factories and stack-up/ramp-up building segments, it said.
The distribution per unit (DPU) for the quarter was 3.07 Singapore cents, up 6.6 percent on-year from 2.88 Singapore cents in the year-ago quarter, the filing said.
Daiwa had forecast net property income of S$72.6 million for the quarter, up 2.5 percent on-year, on revenue of S$98.0 million, up 7.1 percent on-year, with a DPU of 3.01 Singapore cents, up 6.2 percent on-year.
Average portfolio occupancy improved to 88.2 percent in the fiscal third quarter, from 86.7 percent in the fiscal second quarter, it said.
In its outlook, the trust was cautious.
“Business sentiment among local companies moderated significantly for the first quarter of 2019 amid elevated global trade tensions. The pace of global economic expansion is projected to ease, in part due to the impact of the ongoing trade tensions,” the trust said. “The upcoming supply of competing industrial space is expected to moderate both the market rents and occupancy rates. The manager remains focused on tenant retention to maintain a stable portfolio occupancy.”
Mapletree Industrial Trust’s portfolio includes 86 industrial properties in Singapore and 14 data centers in the U.S., via a 40 percent interest in a joint venture with Mapletree Investments.
This article was originally published on Tuesday, 22 January, 2019 at 19:50 SGT; it has since been updated.