Over the latest quarter, MIT also recorded $4.3 million in share of profit of joint venture (JV) as compared to none a year ago, due to the trust’s 40% interest in the portfolio of 14 data centres in the US.
Property operating expenses grew by 6.8% to $22 million on higher property maintenance expenses and property taxes.
Consequently, net property income (NPI) for 1Q19 grew by 1.9% to $69.5 million.
Average portfolio occupancy fell to 88.3% from 90% in the preceding quarter as the Singapore portfolio occupancy fell to 87.8% from 89.6% in 4Q18, although the US portfolio occupancy rate remained unchanged at 97.4%.
The manager says the Singapore portfolio’s lower occupancy was due to a large supply of industrial space and uneven recovery in the manufacturing sector that in turn affected occupancies across segments. The increase in leasable area upon completion of 30A Kallang Place’s AEI also resulted in lower occupancy for the Hi-Tech Buildings segments, it adds.
Going forward, MIT’s manager says it will continue to focus on tenant retention to maintain a stable portfolio occupancy in the face of looming geopolitical uncertainties and the continuing supply of competing industrial space.
Units in MIT closed 1 cent higher at $2.02 on Tuesday.
