Mapletree Industrial Trust’s net income up 0.7% to $130.84m in Q1

Higher borrowing costs tempered growth in the net property income.

Mapletree Industrial Trust Management (MIT) has allotted S$89.9m for distribution to unitholders for the first quarter of fiscal year 2023/2024, a 2.5% decrease from the same period last fiscal year.

The higher net property income was offset by higher borrowing costs, MIT said in its latest financial statement.

Net property income for the quarter is S$130.84m, 0.7% higher than last year’s S$129.9m, which MIT attributed to lower property operating expenses.

A distribution per unit (DPU) of 3.39 cents has been announced for Q1, 1.8% higher than the 3.33 cents in Q4 2022. This is 2.9% lower than the 3.49 DPU announced for Q1 2022.

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Gross revenue grew by 1.7% year-on-year to S$170.6m, thanks to contributions from new leases across various property clusters, MIT said. However, this was partially offset by higher property operating expenses.

Apart from reporting on its financials, MIT also gave an update on its acquisition of a data centre in Osaka, Japan. Acquisition of the data centre–which is fully leased to an “established data centre operator” for about 20 years– is expected to be completed by the third quarter of 2023.