Mapletree Industrial Trust’s unit price down 2.17% after it posted a DPU of 3.10 cents for Q1

Net property income for the first quarter climbed 12.2% higher to S$77.9 million, compared with S$69.5 million in the same period a year ago.

Unit prices of industrial real estate investment trust (REIT) Mapletree Industrial Trust (MIT) were down by 2.17% on Wednesday (24 July, 2019) after the REIT raised its first quarter distribution per unit (DPU) by 3.3% to 3.10 Singapore cents, from 3.0 cents a year ago.

Net property income for the first quarter climbed 12.2% higher to S$77.9 million, compared with S$69.5 million in the same period a year ago. The REIT’s manager attributed the growth to new revenue contributions from industrial properties 18 Tai Seng, Mapletree Sunview 1, and 30A Kallang Place.

For the first quarter, the REIT posted an 8.8% year-on-year increase in gross revenue to S$99.6 million. Total amount available for distribution to unitholders was up 11.1% to S$63.2 million.

The DPU pay-out for the said quarter will be on August 28, 2019.

Mapletree Industrial Trust's unit price dip as investors cash out

Unit prices of MIT fell by 2.17% at around 2.45pm on Wednesday, following the REIT’s post-market hours quarterly results announcement a day earlier, as some investors cashed out. The REIT reached all-time high levels of S$2.33 earlier this month.

Year-to-date, the REIT has risen by 18.4%, from S$1.90 on January 2, 2019.

MIT units closed at S$2.30 on Tuesday before its earnings results were announced, down two Singapore cents or 0.86%.

Business sentiment has improved, but companies remain cautious

MIT said that the business sentiment among local companies has edged up after three consecutive quarters of decline, but companies remain cautious, noting the downside economic risks from the United States-China trade tensions and an uncertain global growth outlook.

Going forward, the industrial property landlord expects a ‘lukewarm manufacturing sector’ in the third quarter of this year, ‘with economic uncertainties and global trade issues posing particular challenges for the electronics and precision engineering sectors’.

Earlier this month, the REIT’s manager announced its largest redevelopment project of the Kolam Ayer 2 Cluster into a high-tech industrial precinct at a total project cost of about S$263 million. The proposed redevelopment will include a build-to-suit facility with gross floor area of about 211,000 square feet.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.