These 3 REITs Have Delivered Growth in Their Latest Earnings

We’re in the earnings season again. Many of the real estate investment trusts listed in Singapore’s stock market have released their latest results. Some showed growth, some had mixed fortunes, while some delivered a weaker financial performance.

In this article, let’s look at three REITs that achieved growth in their latest earnings:

1. Mapletree Commercial Trust (SGX: N2IU) released its results for the quarter ended 31 December 2016 last week.

As a quick introduction, Mapletree Commercial Trust owns retail and commercial properties in Singapore. Its portfolio contains VivoCity, the PSA building, Bank of America Merrill Lynch HarbourFront , Mapletree Anson, and Mapletree Business City.

In the quarter, the REIT’s gross revenue and net property income jumped by 47.4% and 49%, respectively, when compared to the same period a year ago. With that, the REIT’s distribution per unit (DPU) came in 9.6% higher.

Mapletree Commercial Trust’s growth was driven partly by the August 2016 acquisition of Mapletree Business City I. Despite a challenging external environment, the REIT also managed to improve its portfolio’s committed occupancy rate from 98.8% in the previous sequential quarter to 99%.

Regarding the future, Mapletree Commercial Trust expects its properties to “remain relatively resilient.”

2. Next up is another member of the Mapletree family, Mapletree Logistics Trust (SGX: M44U). As its name suggests, the REIT focuses on the logistics real estate sector and its portfolio currently has 128 properties located in Asia and Australia.

The quarter ended 31 December 2016 saw Mapletree Logistics Trust’s gross revenue step up by 7.4% year-on-year. Net property income followed suit with a 7.7% increase while the DPU stayed flat.

But, the REIT’s occupancy rate had declined slightly from 96.4% in the previous quarter to 96.1%. Mapletree Logistics Trust also commented in its earnings release that the “leasing environment remains challenging with continued pressure on occupancy and rental rates.”

3. Rounding out the trio is yet another Mapletree entity, Mapletree Industrial Trust (SGX: ME8U), which released its results for the quarter ended 31 December 2016 a week ago.

Mapletree Industrial Trust’s portfolio comprises of 85 industrial properties that are all located in Singapore.

During the quarter, the REIT grew its gross revenue and net property income by 1.4% and 2.5% year-on-year, respectively. These drove a slight 0.35% uptick in Mapletree Industrial Trust’s DPU.

The REIT described its operating environment as “challenging,” but still managed to post both year-on-year (up from S$1.89 per square feet per month to S$1.93) and sequential growth (up from S$1.92 to S$1.93) for its portfolio’s average rental rate.

Looking ahead Mapletree Industrial Trust thinks that the “continued supply of competing industrial space in Singapore and movement of tenants are expected to exert pressure on rental and occupancy rates.”

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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 Lawrence Nga doesn’t own shares in any companies mentioned.