MAPLETREE Industrial Trust : ME8U 0% (MIT) reported a distribution per unit (DPU) of S$0.0332 for the second quarter ended Sep 30, down 1.2 per cent from S$0.0336 in the same period a year prior.

The decline in DPU was due to an enlarged unit base, MIT’s manager said in a bourse filing on Wednesday (Oct 25).

The amount distributable to unitholders in Q2 FY23/24 rose 3.5 per cent to S$94.1 million, from S$90.9 million previously. It included compensation for the compulsory acquisition of land at 2 and 4 Loyang Lane, and net divestment gains from the sale of 65 Tech Park Crescent, the manager said.

Gross revenue for Q2 fell 0.8 per cent to S$174.1 million, from S$175.5 million previously. Net property income (NPI) for the quarter fell 1.4 per cent to S$128.6 million, from S$130.3 million in the year-ago period.

The fall in NPI in Q2 came partly from the weakening of the US dollar during the quarter, and loss of income from the non-renewal of leases. However, these were offset by new leases across the group’s portfolio, the manager said.

MIT’s portfolio occupancy stood at 93.2 per cent as at end-September, down slightly from 93.3 per cent as at end-June.

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For the six months ended Sep 30, the amount distributable to unitholders grew 1.7 per cent to S$187.8 million. But DPU was down 2 per cent to S$0.0671 from the same period the year before.

Gross revenue for H1 FY23/24 rose 0.4 per cent to S$344.7 million; NPI declined 0.3 per cent to S$259.4 million.

MIT has 142 properties in Singapore, North America and Japan. In September, it completed the previously announced acquisition of a data centre in downtown Osaka – its sole property in Japan.

Tham Kuo Wei, chief executive officer of MIT’s manager, said: “The acquisition of the Osaka data centre represents another milestone in our strategy to strengthen the portfolio and diversify our portfolio geographically.”

As at end-September, MIT’s aggregate leverage ratio stood at 37.9 per cent, from 38.2 per cent as at end-June.

Its weighted average lease expiry (Wale) for the portfolio grew to 4.2 years as at end-September, from 3.9 years as at end-June. This was due to the Osaka data centre Wale of 19.1 years as at Sep 30, the manager said.

Looking ahead, the manager said that it will adopt “cost-mitigating measures while focusing on tenant retention to maintain a stable portfolio occupancy level, as well as prudent capital management to balance the risks and costs in the elevated interest rate environment”.

The distribution for Q2 will be paid on Dec 5. Units of MIT closed 1.4 per cent or S$0.03 lower to S$2.16 on Wednesday, before the announcement.