Mapletree Industrial Trust Delivers Higher Distributions

mapletree industrial trust Mapletree Industrial Trust (SGX: ME8U), or MIT, which has 83 properties located all across Singapore, saw its gross revenue for the first half of 2013 (1H 2013) go up by 9.9% to S$148.5 million over 1H 2012. The net property income rose 10% to S$106.5 million, the distributable income went up by 9.4% to S$81.3 million and the distribution per unit rose 7.7% to 4.90 Singapore cents. MIT said that the year-on-year increase was mainly due to “higher rental rates secured across all property segments and higher occupancies in the Flatted Factories and Stack-up/Ramp-up Buildings.”

As of 30 September 2013, the interest cover ratio was at 7.0 times and the gearing ratio was at 36.2%. The weighted average all-in funding cost turned out to be 2.3%. The average portfolio occupancy decreased to 93.9% from 95.5% mainly because of an “exit of a major tenant at one of the Business Park Buildings.” The net asset value is at $1.11.

Mr Tham Kuo Wei, Chief Executive Officer of Mapletree Industrial Trust Management Limited, the Mananger, said, “The portfolio demonstrated resilience with continued quarter-on-quarter DPU growth of 1.6% despite the exit of a major tenant in 2QFY13/14. During the quarter, MIT refinanced all borrowings due in Financial Year 2013/2014 extending the weighted average tenor of debt from 2.5 years to 3.2 years. With a strong balance sheet and improved financial flexibility, MIT continues to pursue development and acquisition opportunities to grow the portfolio.”

The shares closed on $1.365 on Tuesday. The price-to-book ratio is at 1.23 and the distribution yield is at 7.04%, taking into account the distributions for the past four quarters.

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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.