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

Its average portfolio occupancy fell to 88.3% from 90% in Q1.

Mapletree Industrial Trust’s (MIT) revenue grew 3% YoY in Q1 to $91.5m whilst its net property income (NPI) increased 1.9% to $69.46m, an announcement revealed.

In addition, its distributable income rose 7.6% to $56.9m whilst its distribution per unit (DPU) rose 2.7% YoY to $0.3.

According to the firm, their average portfolio occupancy fell to 88.3% in Q1 from 90% in the preceding quarter whilst their Singapore portfolio occupancy decreased to 87.8% from 89.6%.

“The large supply of industrial space and uneven recovery in the manufacturing sector affected occupancies across segments,” MIT said.

They added that the increase in leasable area upon the enhancement of 30A Kallang Place resulted in a drop in occupancy for the Hi-Tech Buildings segment whilst its US portfolio’s occupancy rate was stable at 97.4%

In June, the firm completed its acquisition of the seven-storey 7 Tai Seng Drive which will be converted into Hi-Tech Building at an estimated total project cost is $95m poised for upgrading completion in H2 2019. It is eyed to be fully leased to an IT firm for an initial term of 25 years

Meanwhile, the $76m Mapletree Sunview 1 which is a BTS data centre development has obtained its Temporary Occupation Permit. The six-storey property will be fully leased to a data centre operator for an initial lease term of more than 10 years.

The firm believes that global political and trade tensions could threaten their projected growth momentum.

“Furthermore, the continuing supply of competing industrial space is exerting pressure on both occupancy and rental rates,” MIT said.

Despite this, MIT believes that demand for leased data centre space in the US will rise at an compound annual growth rate (CAGR) of 6.8%.