- Mapletree Industrial Trust (SGX:ME8U) reported 1QFY24 DPU of S$0.0339, +1.8% q-o-q/-2.9% y-o-y. Higher contribution from new leases was offset by higher operating expenses and borrowing cost. Portfolio occupancy was lower while rent reversions were positive.
- - Read this at SGinvestors.io -
- We tweak down estimates but maintain HOLD and our target price of S$2.30 for Mapletree Industrial Trust.
Borrowing cost offsets organic growth
- Mapletree Industrial Trust's gross revenue and NPI for 1QFY24 grew 1.7% and 0.7% y-o-y, respectively. This was largely led by contribution of new leases mostly offset by higher utilities and maintenance expense. Borrowing cost rose 100bps y-o-y which led to the 2.9% decline in DPU. Sequential trends are interesting. Revenue dipped 0.3% but NPI rose 1.5%.
- - Read this at SGinvestors.io -
- Repayment of borrowings using recent placement proceeds and drawdown of JPY debt helped to keep borrowing cost flat and lower borrowing expense. This helped support 1.8% q-o-q DPU growth.
Positive reversions, mixed occupancy trend
- Read more at SGinvestors.io.
