Mapletree Industrial Trust's NPI grew 12.2% to $77.92m in Q1
New revenue contributions from 18 Tai Seng and 30A Kallang Place drove up earnings.
Mapletree Industrial Trust (MIT) started its FY 2019/2020 on a high note after its net property income (NPI) jumped 12.2% YoY to $77.92m in Q1 from $69.46m in the same period last year, an announcement revealed. Its revenue also rose 8.8% YoY from $91.49m to $99.58m.
Distributable income also grew 11.1% YoY from $56.91m to $63.24m, whilst distribution per unit (DPU) edged up 3.3% YoY to $0.031 from $0.03 in Q1 2018.
The firm attributed its strong performance to new revenue contributions from 18 Tai Seng, 30A Kallang Place and Mapletree Sunview 1.
MIT group’s property portfolio comprises 87 industrial properties in Singapore and 14 data centres in the US (40% interest through the joint venture with Mapletree Investments). The properties in Singapore include flatted factories, hi-tech buildings, business park buildings, stack-up/ramp-up buildings and light industrial buildings. As at 30 June, MIT’s total assets under management (AUM) was $4.8b.
The firm’s average portfolio occupancy improved to 90.8% in Q1 from 90.2% in Q4 FY 2018/2019. The Singapore portfolio occupancy increased to 90.5%, which was largely attributed to the higher occupancy rate registered for the hi-tech buildings segment. Meanwhile, the US portfolio occupancy rate remained unchanged at 97.4%.
According to Tham Kuo Wei, CEO of Mapletree Industrial Trust Management, the firm will be redeveloping the Kolam Ayer 2 flatted factory cluster into a high-tech industrial precinct to unlock value for the portfolio and utilise untapped plot ratio. The project, which is said to cost around $263m, will include a build-to-suit (BTS) facility with a gross floor area (GFA) of about 211,000 sqft for a global medical device company headquartered in Germany. The anchor tenant is said to have committed to fully lease it for 15 years with annual rental escalations.
The seven-storey BTS facility will reportedly account for about 24.4% of the enlarged GFA upon completion in H2 2022.
As well, MIT’s upgraded data centre at 7 Tai Seng Drive has obtained its temporary occupation permit in early July. The seven-storey data centre, with a GFA of about 256,600 sqft, has been fully leased to Equinix Singapore for an initial lease term of 25 years with annual rental escalations.