Friday, July 27, 2012

MIT's Q1 DPU up 14% to 2.26 cents

Business Times: Wed, Jul 25

MAPLETREE Industrial Trust (MIT) saw its distributable income rise 27.1 per cent to $36.9 million for the first quarter ended June 30, from $29 million for the same period a year ago.

Its unitholders will receive a distribution per unit (DPU) of 2.26 cents, 14.1 per cent higher than the 1.98 cents delivered for the same quarter a year back.

Q1 net property income rose 26.4 per cent to $48.3 million, from $38.2 million a year ago, largely thanks to revenue contributions and cost synergies from the acquisition of the flatted factories in August last year, said Mapletree Industrial Trust Management CEO Tham Kuo Wei.

Gross revenue rose 21.6 per cent year on year to $66.9 million in the quarter, up from $55 million as a result. Additional operating expenses from the acquisitions also led to a 10.5 per cent rise in property expenses to $18.5 million, from 16.7 million a year ago. Excluding the acquisition portfolio, gross revenue still rose 8.4 per cent in the quarter, due to higher rental rates secured and higher occupancies for the original IPO portfolio.

"The strong performance was also boosted by positive rental revisions across all property segments," Mr Tham said.

The average passing rent of MIT's portfolio rose to $1.56 per square foot per month (psf/mth) from $1.55 psf/mth in the previous quarter. The Reit's portfolio of 81 industrial properties, such as business park buildings and warehouses in Singapore, had an average occupancy rate of 94.9 per cent in the quarter.

Leases that are still due for renewal this financial year make up 13 per cent of MIT's revenue. With tenants taking up longer lease packages, the weighted average lease duration to expiry of MIT's portfolio has also risen to 2.6 years, from 2.5 years in the previous quarter.

The manager is "cautiously optimistic" that MIT will continue to perform well for the rest of the financial year as its portfolio remains diversified and is supported by a healthy balance sheet. No single tenant and industry sector accounts for more than 3.5 per cent and 15 per cent of its monthly rental revenue respectively.

MIT also said recent government measures to curb speculation, including changes to the Industrial Government Land Sales programme, raising land supply, shortening land tenures and imposing stricter development conditions for new industrial sites, will have a muted effect on its portfolio, as most of its properties are in established industrial estates and there is a long gestation period for new spaces to be ready.

MIT units closed one cent lower at $1.235 each yesterday, before its results were announced.

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