SINGAPORE (Oct 23): The manager of Mapletree Industrial Trust (MIT) announced DPU for 2Q19 ended Sept rose 0.3% year-on-year to 3.01 cents.
This came on the back of a 4.9% y-o-y rise in distributable income for 2Q19 to $56.7 million due to contributions from development projects and income contribution from MIT’s 40% interest in the portfolio of 14 data centres in the United States.
For the 1H19 ended Sept, distributable income and DPU came in at $113.6 million and 6.01 cents respectively, representing y-o-y increases of 6.2% and 1.5%.
Gross revenue and net property income for the 2Q19 were $92.2 million and $70.6 million respectively, registering marginal declines of 0.4% and 0.1% over the same period last year.
This was largely due to the effect of the pre-termination compensation received in 2Q18, without which the gross revenue would have been higher by 3.1%. The lower Singapore portfolio occupancy in 2Q19 was offset by contribution from Phase Two of the build-to-suit project for HP Singapore and recently completed development projects.
Average portfolio occupancy fell to 86.7% in 2Q19 from 88.3% in the preceding quarter. The Singapore portfolio occupancy decreased to 86.2% in 2Q19 from 87.8% in 1Q19. Lower occupancies were registered across most property segments due to the large supply of industrial space and uneven recovery in the manufacturing sector. The lower Singapore portfolio occupancy was partly due to the scheduled termination of leases at 7 Tai Seng Drive in preparation for upgrading works. The US portfolio occupancy rate remained unchanged at 97.4%.
In its outlook, Mapletree Industrial Trust Management says uncertainties from heightened global political and trade tensions may derail the economic growth momentum. The imminent supply of new 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.
According to JLL, the North American, EMEA and APAC data centre markets absorbed a total of 421.2MW in 1H18, 31.9% higher compared to 1H17.
Unitholders can expect to receive the DPU for 2Q19 in cash or DRP units by Dec 6. The transfer of MIT’s books and register of unitholders will be closed at 5pm on Oct 31.
Year to date, units in MIT are down 5.3% to $1.95.