Mapletree Industrial Trust reports fiscal 4Q net property income rose nearly 12 percent

Mapletree Industrial Trust property at 18 Tai Seng in SingaporeMapletree Industrial Trust property at 18 Tai Seng in Singapore

Mapletree Industrial Trust reported Monday its fiscal fourth quarter net property income rose 11.7 percent on-year to S$75.85 million on new contributions from acquisitions.

Gross revenue for the quarter ended 31 March increased 9.3 percent on-year to S$98.82 million, the trust said in a filing to SGX Monday after the market close.

The distribution per unit (DPU) for the quarter was 3.08 Singapore cents, up 4.4 percent from 2.95 Singapore cents in the year-ago quarter, the filing said.

Daiwa had forecast net profit of S$73.9 million on revenue of S$103.1 million, with DPU of 3.13 Singapore cents.

Revenue was boosted by new contributions from the 18 Tai Seng, 30A Kallang Place and Mapletree Sunview 1 properties, partially offset by lower occupancy in the flatted factories and stack-up/ramp-up building segments, Mapletree Industrial Trust said.

For the full fiscal year, net property income rose 3.7 percent on-year to S$287.77 million on gross revenue of S$376.10 million, up 3.5 percent on-year, the trust reported. For the full year, DPU was 12.16 Singapore cents, up 3.5 percent on-year from 11.75 Singapore cents in the previous year, it said.

Tham Kuo Wei, CEO of Mapletree Industrial Trust Management, the trust’s manager, said the full-year results were bolstered by contributions from investment projects in the hi-tech buildings segment.

“We made further strides in our strategy of growing this segment with the completion of the build-to-suit data center development Mapletree Sunview 1 and the accretive acquisition of 18 Tai Seng during the financial year,” Tham said in the statement. “To deliver sustainable returns, we will continue to explore acquisitions as well as build-to-suit and development opportunities.”

Average portfolio occupancy rose to 90.2 percent in the fiscal fourth quarter, from 88.2 percent in the preceding quarter, the trust said.

As of end-March, Mapletree Industrial Trust had a portfolio of 87 properties in Singapore and 14 data centers in the U.S.

In its outlook, the trust was cautious and said it was focusing on tenant retention to keep occupancy stable.

“Business sentiment among local companies waned for the third consecutive quarter in the second quarter of 2019. The weaker external demand affecting the wholesale trade and manufacturing sectors, as well as the chain effects of a slowdown in China have weighed on
the outlook within the region,” the trust said. “The upcoming supply of competing industrial space is expected to moderate both the market rents and occupancy rates.”


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