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Mapletree Industrial Trust – Three Things That Investors Should Know About Its Financial Results

Mapletree Industrial Trust (SGX: ME8U) or MIT focusses on the industrial real estate sector. It has 86 properties valued at S$3.77 billion, as of 30 June 2017.

The REIT has recently reported its Q1 FY17/18 result. In this article, we will look at three particular useful piece of information from the announcement.

Overall financial performance

Source: Mapletree Industrial Trust Q1 FY17/18 Presentation

We can see that MIT performed positively across most metrics in the first quarter of FY17/18 as compare to the same period last year.

Occupancy rate:

Occupancy rate is important, since it measures the strength of the market demand for a REIT’s property. Here, the occupancy rate across its different property segments.

Source: Mapletree Industrial Trust Q1 FY17/18 Presentation

We can see that the overall occupancy rate was marginally lower for the quarter, as compare to the same period last year. This was mainly due to lower occupancy rates in flatted factories and hi-tech buildings.

Distribution per unit trend:

The main source of returns for investors is through income distribution. As such, investors would like to see sustainable growth in distributions per unit (DPU).

Below is a quick overview of DPU of Mapletree in the last few years.

Source: Mapletree Industrial Trust Q1 FY17/18 Presentation

From the above, we can see that distribution per unit (DPU) has grown steadily over the years. To put it into perspective, DPU has grown at 6.7% CAGR in the last six 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.