Mapletree Industrial Trust DPU increases by 1.2% - Our Quick Take

Summary of Mapletree Industrial Trust's 1Q FY24/25 results

Mapletree Industrial Trust reported its results and dividends for the first quarter fiscal year 24/25 (1Q FY24/25) for the quarter ending 30th June 2024.

• Mapletree Industrial Trust's 1Q FY24/25 distribution per unit (DPU) increased 1.2% year-on-year to 3.43 cents, compared to 3.39 cents in 1Q FY23/24. 
• Mapletree Industrial Trust's 1Q FY24/25 DPU also increased by 2.1% compared to the DPU of 3.36 cents in the previous quarter. 
• This translates to an annualised yield of 6.1%.

Revenue and net property income for 1Q FY24/25 rose by 2.7% and 1.3% year-on-year to S$175.3 million and S$132.5 million respectively. 

The improvement was mainly attributed to the revenue contribution from the newly acquired data centre in Osaka, Japan, as well as new leases and renewals signed.

Mapletree Industrial Trust's portfolio occupancy increased slightly to 91.9% from 91.4% in 4Q FY23/24 as the REIT successfully secured a replacement tenant to fully lease the facility at 402 Franklin Road, Brentwood.

Its average rental reversion also increased to +9.2% in 1Q FY24/25 from +6.6% in 4Q FY23/24. 

Mapletree Industrial Trust's borrowing costs fell by 0.9% year-on-year to S$26.2 million and was 5.6% lower compared to 4Q FY23/24. 

The lower borrowing cost was driven by repayment of loans with proceeds from the equity fundraising exercise and divestment of Tanglin Halt Cluster. 

This was partly offset by additional interest expense incurred for loans taken for the Osaka Data Centre.

Mapletree Industrial Trust's gearing rose to 39.1% from 38.7% in 4Q FY23/24. Its Interest Coverage Ratio was maintained at 4.3x, unchanged from the previous quarter. 

On 25 June 2024, MIT completed Phase 3 fit out works for the Osaka Data Centre for JPY5.2 billion. The last phase of fit out works is expected to be completed by May 2025.

Beansprout's take on Mapletree Industrial Trust's 1Q FY24/25 results

The earnings are likely to be seen as positive by investors, as distributions in 1Q FY24/25 DPU were resilient and higher compared to 1Q FY23/24. 

Operationally, there were also positive signs with higher occupancy and rent reversions in the quarter.

At the same time, Mapletree Industrial Trust's balance sheet remains healthy with a gearing level of below 40% and a high interest coverage ratio.

However, Mapletree Industrial Trust's share price has bounced significantly in the past few weeks.

It currently trades at a price-to-book valuation of 1.3x, above its historical average. 

Dive deeper into the Mapletree Industrial Trust with our checklist and find out if it may be worthwhile adding the REIT to your watchlist. 

To learn more about our outlook on Singapore REITs, read our detailed report on "Singapore REITs - Distributions may remain under pressure"

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Related links:

• Mapletree Industrial Trust share price and share price target
• Mapletree Industrial Trust dividend forecast and dividend history

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