Mapletree Industrial Trust ME8U (MIT) has reported a distribution per unit (DPU) of 3.36 cents for 4QFY2024 ended March 31, up 0.9% y-o-y. This brings full-year FY2024 DPU to 13.43 cents, down 1.0%.
Net property income for the full-year period increased by 0.6% y-o-y to $521.0 million, while gross revenue came to $697.3 million, up by 1.8% y-o-y. The improved performance was mainly driven by revenue contributions from the Mapletree Hi-Tech Park @ Kallang Way redevelopment project and the Osaka data centre, as well as new leases and renewals across various property clusters.
As at March 31, MIT’s total assets under management was $8.9 billion, comprising 83 properties in Singapore and 56 properties in North America, including 13 data centres held through a joint venture with Mapletree Investments.
Tham Kuo Wei, CEO of the manager, says FY2024 was a challenging year characterised by macroeconomic uncertainties and headwinds from higher operating expenses and borrowing costs. “MIT remained resilient, strengthened its portfolio with its maiden data centre acquisition in Japan, and unlocked value through the divestment of its Tanglin Halt Cluster.”
“MIT will remain focused on pursuing accretive acquisitions and developments as well as selective divestments of non-core assets to deliver sustainable returns to our unitholders,” he adds.
The average rental rate of MIT’s Singapore portfolio showed resilience during the quarter, increasing slightly to a monthly rate of $2.22 per sqft in 4QFY2024, from $2.21 in the preceding quarter.
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MIT achieved positive rental revisions for renewal leases across all property segments in Singapore for the quarter, with a weighted average rental revision rate of about 6.6%.
Meanwhile the average rental rate of its North American portfolio also increased to a monthly rate of US$2.51per sqft in 4QFY2024 from US$2.43 in 3QFY2024.
MIT warns that rising property operating expenses and increases in borrowing costs may continue to exert pressure on distributions.
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The manager says it will adopt cost-mitigating measures and focus on tenant retention as well as prudent capital management to balance the risks and costs in the elevated interest rate environment.
Units in MIT units closed 1 cent lower or 0.44% down at $2.27 on April 25.
