Mapletree Industrial Trust NPI dipped 0.1% to $70.59m in Q2

DPU inched up 0.3% to $0.301.

Mapletree Industrial Trust (MINT) witnessed its net property income (NPI) dip 0.1% to $70.59m in its Q2 FY 18/19, an announcement revealed.

The management said that the slip was largely due to the effect of the pre-termination compensation received in Q2 FY17/18, which also prevented gross revenue to go up by 3.1%.

Despite this, distributable income grew 4.9% YoY to $1.89b whilst distribution per unit (DPU) inched up 0.3% to $0.301 in Q2.

The firm’s average portfolio occupancy fell to 86.7% in Q2FY18/19 from 88.3% in Q1 whilst its Singapore portfolio occupancy slipped to 86.2% from 87.8% in Q1. US portfolio occupancy rate stood still at 97.4%

Also read: Mapletree Industrial Trust's NPI up 1.9% to $69.46m in Q1

“Lower occupancies were registered across most property segments due to the large supply of industrial space and uneven recovery in the manufacturing sector,” the firm explained.

Meanwhile, the lower Singapore portfolio occupancy was partly due to the scheduled termination of leases at 7 Tai Seng Drive in preparation for upgrading works, with the exit of the last tenant expected to be Q4 2018.

“The imminent supply of new competing industrial space is expected to moderate both the market rents and occupancy rates,” the firm said. “The manager remains focused on tenant retention to maintain a stable portfolio occupancy."