- Mapletree Industrial Trust (SGX:ME8U)’s 3QFY24 results came in within our expectations. Gross revenue and net property income (NPI) rose 0.8% and 3.1% y-o-y to S$129.9m and S$95.2m, respectively. However, DPU fell 0.9% y-o-y to S$0.0336 due largely to higher income taxes, lower capital distributions from divestment gains and an enlarged unit base.
Results met our expectations
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Portfolio weighted average rental reversions of 7.2% for renewal leases in Singapore
- Mapletree Industrial Trust achieved positive rental uplifts for its renewal leases for all reported business segments in Singapore, ranging between 4.1% and 10.5%, or 7.2% on an overall portfolio weighted average basis (2QFY24: +8.8%).
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Occupancy fell due to drag from the US
- However, Mapletree Industrial Trust’s portfolio occupancy slipped 0.6 percentage points (ppt) q-o-q to 92.6%. Its Osaka data centre remained fully occupied and Singapore’s occupancy rose 0.4 ppt q-o-q to 93.8%, but this was offset by a dip in its US portfolio by 2.8 ppt q-o-q to 89.9%.
- The decline was likely due to the return of space by AT&T, as evidenced from the decline in proportion of its gross rental income contribution from 5.1% (as at 30 Sep 2023) to 2.6% (as at 31 Dec 2023). We have already factored this in our forecast.
Aggregate leverage ratio increased to 38.6%
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