Mapletree Industrial Trust Records 7.5% Increase in DPU

mapletree industrial trust Mapletree Industrial Trust (SGX: ME8U), or MIT, announced its 1st Quarter 2014 (1Q 2014) results last week. It posted a 12.3% increase in gross revenue of $75 million over 1Q 2013.

Net property income came in at $52.5 million, an 8.5% increase over the same period last year. Distributable income was at $40.2 million, a year-on-year increase of 9.0% from S$36.9 million. Distribution per unit (DPU) was 2.43 Singapore cents, 7.5% higher than same period last year. If annualised, the DPU is at 9.72 cents. The annualised dividend yield is at 7.04%, as of the market close on 25 July 2013.

The gearing ratio as at 30 June 2013 is at 35.8%. The average cost of debt is at 2.4% with a healthy interest cover ratio of 7.0 times. The weighted average tenor of debt is at 2.5 years, with 19% of gross debt or $206 million expiring in this financial year. The bulk of the debt or 31% of it is expiring in the next financial year.

Average portfolio occupancy improved slightly from 95.4% to 95.5% in 1Q 2014. The net asset value of MIT is at $1.11 as of 30 June 2013.

From 1 April 2013 onwards, the manager of MIT, Mapletree Industrial Trust Management Limited, introduced a new property segment called “Hi-Tech Buildings”. It provides a more focused classification of the updated specification, tenant profile and usage of space of the MIT properties.

Mr Tham Kuo Wei, Chief Executive Officer of Mapletree Industrial Trust Management Limited, said, “MIT has continued to deliver stable distributions for 1QFY13/14 with better operational performance. The introduction of the Hi-Tech Buildings segment is timely as Asset Enhancement Initiatives and build-to-suit projects are completing progressively. The updated property segments are also more reflective of the broad spectrum of industrial facilities offered by MIT.”

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.  Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.