SINGAPORE (Jan 24): The manager of Mapletree Industrial Trust (MIT) has declared a distribution per unit (DPU) of 2.83 cents for the 3Q ended Dec 2016, 0.4% higher than its DPU of 2.82 cents a year ago.

Distributable income stood at $51.1 million, up 1.6% from $50.3 million a year ago.

Gross revenue for 3Q grew 1.4% to $84.45 million from $83.25 million in the previously, mainly driven by higher rental rates achieved across all property segments as well as revenue contribution from Phase One of the trust’s build to suit (BTS) development for Hewlett-Packard (HP).

This was however partially offset by lower portfolio occupancy, says the manager in a Tuesday filing to the SGX.

Average portfolio occupancy declined to 92.1% from 92.5% in the preceding quarter, as lower occupancies were registered for hi-tech buildings and business park buildings segments.

Average portfolio passing rent increased by 0.01 psf/mth to $1.93 psf/mth compared to the preceding quarter. This was mainly attributable to the lease commencement of HP, which accounted for 5.3% of the portfolio as at 31 Dec 2016.

Property expenses for the quarter fell 1.6% on year to $21 million compared to $21.4 million a year ago.

The manager notes that MIT continues to maintain a well-staggered debt maturity profile, with a weighted average tenor of debt at 3.2 years as at end-2016.

In its outlook, MIT’s manager expects a challenging business environment; the continued supply of competing industrial space in Singapore; as well as the movement of tenants which it anticipates to exert pressure on MIT’s rental and occupancy rates.

The manager intends to continue focusing on tenant retention to maintain a stable portfolio occupancy.

“The commencement of revenue from Phase One of the BTS development for Hewlett-Packard is a timely contribution to the portfolio amid the challenging operating environment,” comments Tham Kuo Wei, CEO of the manager.

“With a low aggregate leverage ratio of 29.4%, MIT remains focused on executing existing development initiatives and pursuing investment opportunities to create value for unitholders.”

Unitholders of MIT can expect to receive the DPU for 3Q on Feb 28.

Units of MIT closed 2 cents lower at $1.64.