Mapletree Industrial Trust: 3 Things Investors Should Know From Its Latest Earnings

Mapletree Industrial Trust (SGX: ME8U) is a REIT that focuses on the industrial real estate sector in Singapore. It currently has 86 properties in its portfolio (all in Singapore) that are collectively valued at S$3.7 billion.

Last week, the REIT reported its results for its fiscal year ended 31 March 2017 (FY16/17). Let’s look at three useful pieces of information that investors may want to know from the announcement:

1. The overall result

The following table shows some important numbers from Mapletree Industrial Trust’s income statement for FY15/16 and FY16/17:

Source: Mapletree Industrial Trust FY16/17 full year earnings presentation

We can see that the REIT reported growth in gross revenue, net property income, and distribution per unit (DPU).

2. Occupancy rates

The occupancy rate of a REIT’s portfolio is an important indication of the level of demand for its properties. Here’s a table showing the occupancy rates of the different classes of industrial properties that Mapletree Industrial Trust has in its portfolio:

Source: Mapletree Industrial Trust FY16/17 full year earnings presentation

What we can observe is that the REIT has mostly turned in a sequential improvement in its occupancy rates. Moreover, its properties have occupancy rates of 90% or more on average at the end of FY16/17.

3. Growth in distributions

A very important source of return that investors get from a REIT is its distributions. As such, it’s ideal to find a REIT that has displayed growth in its DPU over a long period of time.

The chart below shows the quarterly distributable income and DPU for Mapletree Industrial Trust since the third quarter of its FY10/11:

Source: Mapletree Industrial Trust FY16/17 full year earnings presentation

Although the REIT’s DPU has not grown in each quarter, there’s still an unmistakable upward climb through the years.

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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.