Mapletree Industrial Trust (MIT) has reported a distribution per unit (DPU) of 13.57 cents for the FY2024/2025 ended March 31, up 1% y-o-y. For the fourth quarter, DPU came in flat y-o-y at 3.36 cents.
This reported DPU includes the distribution of net divestment gain of $13.4 million from 115A & 115B Commonwealth Drive over four quarters from 1QFY2024/2025 to 4QFY2024/2025, and the distribution of net compensation of $1.9 million in relation to a redevelopment project which was recognised in 1QFY2024/2025.
The trust reported a net property income (NPI) of $531.5 million, up 2% y-o-y for FY2024/2025. However, for the fourth quarter ended March, NPI dropped 0.5% y-o-y to $131.2 million.
Revenue for the full year came in 2.1% y-o-y higher at $711.8 million, but dropped 0.5% y-o-y for the 4QFY2024/2025 to $177.8 million.
The trust says that the full year increase in gross revenue and NPI was driven by revenue contributions from the completion of the second and third phases of fitting out works of the Osaka Data Centre and the freehold mixed-use facility in Tokyo acquired Oct 29, 2024.
This higher NPI was partially offset by lower distribution from the joint venture and interest on new borrowings taken to fund the Tokyo acquisition.
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For the fourth quarter ended March, NPI decreased due to non-renewal of leases in the North American portfolio and loss of income from divestment of the Tanglin Halt cluster.
Distribution declared by joint ventures for the quarter was lower due to absence of one-off release of amounts previously withheld due to uncertainties in collections from a tenant in corresponding quarter last year; and higher borrowing costs from repricing of matured interest rate swaps.
For the quarter ended March, average portfolio occupancy fell to 91.6% from the previous quarter, due to decline in North American portfolio as a result of non-renewal of lease at 2000 Kubach Road, Philadelphia.
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The trust reported a total debt of $3.17 billion as at end March, and a weighted average tenor of debt of 3.2 years. Its aggregate leverage ratio was 40.1%.
As at end March, interest coverage ratio stood at 4.3 times.
The trust says that increasing property operating expenses and elevated borrowing costs may continue to exert pressure on distributions. The manager will intensify its leasing efforts to improve occupancies while actively optimising the portfolio performance through repositioning or divestments.
Units in MIT closed 1 cent lower or 0.493% down at $2.02 on Apr 30.
