Tough leasing environment mars Mapletree Industrial Trust’s decent Q3 results

Its net property income grew to $58m.

An increasingly challenging leasing environment looms over Mapletree Industrial Trust, in spite of the fact that the group reported decent results for the third quarter of its financial year.

The group reported that its net property income grew 5.4% year on year to $58m and revenue inched up by 3.3% to $78.1m, while its distribution per unit grew 6.4% to 2.67 cents.

According to OCBC, MIT will have to deal with the challenging leasing environment in coming quarters, on back of escalating competitive pressures and the soft macroeconomic landscape.

“Rental reversions are likely to continue to moderate as the gap between MIT’s passing rents and market rents are narrowing. Average portfolio occupancy dipped slightly from 91.5% in 2QFY15 to 90.8% in 3QFY15 due to the continued relocation of tenants from the Telok Blangah Cluster (11% occupancy rate),” stated OCBC.