Saturday, November 7, 2009

MI-Reit posts 16% fall in Q2 income distribution

MACARTHURCOOK Industrial Reit (MI-Reit) reported a 16 per cent decline in income distribution to $5.17 million for its fiscal second quarter ended Sept 30 due to higher borrowing costs.

Distribution per unit (DPU) thus fell 17.5 per cent from a year ago to 1.939 cents. The Q2 distribution represents 100 per cent of the taxable income available for distribution. Gross revenue dipped 4.6 per cent to $11.83 million largely due to a reduction in service charge revenue.

MI-Reit said its income stream continues to be supported by a 98.8 per cent portfolio occupancy rate, with a weighted average lease duration of 4.2 years.

As at Sept 30, it holds 21 properties in Singapore and Japan with a total carrying value of $490.6 million and revalued net asset value of $0.94 per unit.

Ten properties are scheduled for rental rise ranging from 1.5 per cent to 5 per cent in fiscal 2010 ending March 31.

Its manager said it expects the economic outlook to remain challenging for the rest of this calendar year.

‘With the higher cost of borrowing, the income available for distribution in fiscal 2010 will be lower than in fiscal 2009,’ it added. But rental income is expected to remain stable.

Source: Business Times, 7 Nov 2009

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