MIT’s net income climbs 6% to $63.8m in Q1

Thanks to raised business segments’ margins.

Mapletree Industrial Trust (MIT) has kicked off its FY17 with a bang, as net property income Q1 rose 6% YoY to $63.8m.

According to a report by OCBC, the pick-up is thanks to better margins for all its business segments, save for Light Industrial Buildings.

Moreover, Q1 gross revenue inched up 3% YoY to $84.1m, while DPU edged up 4.4% YoY to 2.85 S cents. OCBC notes that this is thanks to increased rental rates achieved across all property segments, as well as improved occupancies at High-Tech Buildings and Business Park Buildings.

MIT’s rental reversions for renewal leases came in mixed for Q1, though average portfolio passing rents grew marginally to S$1.92 psf/month from $1.90 psf/month (as at end-4QFY16).

Meanwhile, overall portfolio occupancy dipped to 93% from 94.6% (as at 31 Mar 2016).

In terms of financial position, OCBC asserts that MIT has a robust leverage of 28.2%, which is one of the lowest within the S-REITs space.