Mapletree Industrial Trust reports fiscal 1Q net property income rose 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 Tuesday its fiscal first quarter net property income increased 12.2 percent on-year to S$77.92 million on revenue contributions from new projects at 18 Tai Seng, 30A Kallang Place and Mapletree Sunview 1.

Gross revenue for the quarter ended 30 June rose 8.8 percent on-year to S$99.58 million, the trust said in a filing to SGX.

The distribution per unit (DPU) was 3.10 Singapore cents for the quarter, up 3.3 percent from 3.0 Singapore cents in the year-ago quarter, the trust said.

Daiwa had forecast net property income of S$77.9 million on revenue of S$102 million, with a DPU of 3.09 Singapore cents.

“We have delivered another set of robust financial results with our well-timed investments within the Hi-Tech Buildings segment,” Tham Kuo Wei, CEO of the trust’s manager, said in the statement.

“In Singapore, we will be redeveloping the Kolam Ayer 2 Flatted Factory Cluster into a high-tech industrial precinct to unlock value for the portfolio and utilise untapped plot ratio,” Tham said. “The Hi-Tech Buildings segment will continue to underpin our efforts to strengthen MIT’s growth profile.”

The average portfolio occupancy rose to 90.8 percent at the end of the quarter, up from 90.2 percent at the end of the fiscal fourth quarter, the filing said.

Mapletree Industrial Trust issued a cautious outlook.

“Business sentiment among local companies edged up slightly after three consecutive quarters of decline. However, they remained cautious amid the mounting downside economic risks from the ongoing United States-China trade tensions and an uncertain global growth outlook,” the trust said.

“A lukewarm manufacturing sector is also expected in the third quarter of 2019, with economic uncertainties and global trade issues posing particular challenges for the electronics and precision engineering sectors,” it added.

Mapletree Industrial Trust has 101 properties across the hi-tech building, business park, U.S. data center, stack-up/ramp-up, flatted factory and light industrial segments.

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