The manager of Mapletree Industrial Trust (MINT) has reported distribution per unit of 3.10 cents for the 2QFY2020/2021 ended September, 1.0% down from the DPU of 3.13 cents a year ago on an enlarged unit base.
See also: DBS maintains 'buy' on Mapletree Industrial Trust on improved earnings visibility
This brings DPU for 1HFY2020/2021 to 5.97 cents, 4.2% lower than the DPU of 6.23 cents a year ago. Some $7.1 million had been withheld in 1QFY2020/2021. Had the income been distributed, DPU for 1HFY2020/2021 would have been 6.29 cents.
Gross revenue for 2QFY2020/2021 was up 1.5% y-o-y to $103.4 million mainly due to revenue from the consolidation of the 14 data centres in the US previously held under Mapletree Redwood Data Centre.
Property operating expenses for the quarter dropped 0.6% y-o-y to $21.7 million, due mainly to lower property maintenance expenses and marketing commission. The lower expenses were partially offset by additional costs from the consolidation of the US data centres, higher property tax and allowance for doubtful debts.
Accordingly, net property income (NPI) registered a 2.0% increase y-o-y to $81.6 million.
Distributable income for the quarter rose 14.8% y-o-y to $72.9 million mainly due to the higher NPI and distributions declared by joint ventures, which surged over 200% to $11.9 million from $3.9 million the year before.
As at end September, cash and cash equivalents stood at $151.8 million.
MINT’s average overall portfolio occupancy for the quarter increased 1.2 percentage points q-o-q to 92.3%. Its weighted average lease expiry (WALE) stood at 4.2 years as at Sept 30.
Data centres and stack-up and ramp-up buildings registered lower average occupancy rates for the quarter. The average occupancy rates of other property segments increased or remained flat q-o-q.
On Sept 1, MINT completed the acquisition of the remaining 60% interest in the 14 data centres in the US for a purchase consideration of US$215.3 million ($292.8 million).
The REIT announced the proposed acquisition of a data centre and office in Virginia, US for a purchase consideration of between US$200.6 million and US$262.1 million ($272.8 million to $356.5 million) on Sept 14.
Looking ahead, the REIT expects “challenging” times for the Singapore industrial property due to the uncertain economic trajectory globally.
The manager says it will continue to support its tenants, especially small and medium-sized enterprises (SME) tenants that have been affected by supply chain disruptions and fall in business volume as a result of the pandemic.
The manager estimates that the rental reliefs extended to tenants will amount to some $20 million, which will affect the REIT’s distributable income for FY2020/2021.
“We made further progress in our portfolio rebalancing efforts in 2QFY2020/2021, with the successful completion of the acquisition of the remaining 60% interest in the 14 data centres in the United States,” says Tham Kuo Wei, CEO of the manager.
“During the quarter, we have also announced the proposed acquisition of a data centre in Virginia and commenced the works for the redevelopment of the Kolam Ayer 2 Cluster. We remain focused on retaining and supporting our tenants through this uncertain economic environment,” he adds.
Units in MINT closed flat at $3.10 on Oct 27, prior to the announcement.
