Mapletree Industrial Trust posts fiscal 1Q net property income climbed 33 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 profit climbed 33.1 percent on-year to S$104.72 million, mainly on the acquisition of 14 data centers in the U.S., the recent acquisition of a Virginia property and the absence of year-ago rental relief provided to tenants.

Gross revenue for the quarter ended 30 June increased 29.2 percent on-year to S$128.06 million, the trust said in a filing to SGX.

The distribution per unit (DPU) for the quarter came in at 3.35 Singapore cents, up 16.7 percent on-year, the trust said.

The average overall portfolio occupancy for the quarter rose to 94.3 percent, from 93.7 percent in the previous quarter, on the completion of the Virginia acquisition and an improvement in the Singapore portfolio’s average occupancy in the hi-tech buildings, flatted factories and stack-up/ramp-up buildings.

The Richmond, Virginia, acquisition, a data center, was completed in March for a final consideration of around US$220.9 million, or around S$300.4 million.

Mapletree Industrial Trust issued a mixed outlook.

“The global economic outlook remains uncertain, with risks around the path of the pandemic and the possibility of financial stress amid large debt loads,” the trust said, noting recovery will likely be uneven amid unequal vaccine access.

But it added, “the pandemic has boosted data centre demand in the short and, potentially, long term,” citing data from 451 Research projecting data center demand would grow at a compound annual growth rate of 8 percent between 2019 and 2025.

Mapletree Industrial Trust’s portfolio has 114 properties across six segments: Light industrial buildings, stack-up/ramp-up buildings, data centers, flatted factories, business park buildings and hi-tech buildings. Around 65 percent of the trust’s S$6.7 billion in assets under management are located in Singapore, with the remainder in North America.