Friday, October 28, 2011

Mapletree Ind Trust Q2 DPU 10.8% above forecast

Business Times: Wed, Oct 26
MAPLETREE Industrial Trust (MIT), which was listed in October last year, saw its distributable income increase 26.6 per cent to $31.6 million for the fiscal second quarter ended Sept 30, 2011, from a proforma $25.0 million the year before.

The distributable income was also 16.6 per cent higher than the forecast $27.1 million. MIT achieved a distribution per unit (DPU) of 2.05 cents - 10.8 per cent higher than the forecast 1.85 cents.

MIT, part of the Mapletree group, invests in income-producing real estate used primarily for industrial purposes - such as business park buildings and flatted factories - and real estate-related assets.

Its gross revenue climbed 18 per cent year-on-year to $59.4 million in the September quarter, due largely to higher occupancies in its properties and higher rental secured from both new and renewed leases that quarter, said its results announcement.

It also said that the acquisition of eight flatted factories and three amenity centres from JTC Corporation on Aug 26 also contributed to the increase in gross revenue - with the properties contributing about 4.3 per cent of the total gross revenue for the quarter.

With the acquisitions, MIT's portfolio now comprises 81 properties located across Singapore.

The latest acquisitions were partly financed by new equity through an equity fund raising exercise completed on Aug 24, which raised about $176.9 million through the issue of about 165.5 million new MIT units.

MIT's net property income for the period grew 22.9 per cent to $41.5 million. Its net income before tax and distribution rose 23.6 per cent to $30.4 million.

MIT had paid out an advance DPU of 1.14 cents to eligible unitholders on Aug 31, which represented the distribution from July 1 to Aug 22 to unitholders existing as at Aug 4 and prior to the issuance of the new units pursuant to the equity fund raising.

The payout of the distribution for the enlarged units in issue for the remaining period from Aug 23 to Sept 30 is 0.91 cents per unit. Accordingly, the weighted average DPU for the quarter is 2.05 cents.

Looking ahead, Mapletree Industrial Trust Management - the manager of MIT - said that if confidence continues to weaken across the global economies, the outlook in the manufacturing sector will be dampened. 'Barring any additional shocks to the global economy, the manager expects market rents to stay flat in the near term.'

'The MIT portfolio is larger and more diversified after the recent acquisition of the flatted factories portfolio from JTC. With a healthy balance sheet and only 8.2 per cent of leases due for renewal in the next six months, the manager is on track to exceed the forecast estimates for (the) financial year 2011 as stated in the IPO prospectus,' it added.

MIT shares finished up half a cent at $1.135 yesterday.

Team Marshe
Martin Koh/ Sherry Tang
9383-3992/ 9844-4400

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