Three MI-Reit properties gain $1.3m in revaluation

Source : Business Times - 5 Sep 2008

Revaluations raise carrying amount for portfolio to $554.1m from $553.6m

THREE properties under MacarthurCook Industrial Reit (MI-Reit) have gained $1.3 million in value from a year ago in the latest revaluation exercise.

MI-Reit’s manager, MacarthurCook Investment Managers (Asia) Ltd, yesterday released new independent valuations for seven industrial properties as at Sept 1. The value of four other properties remained unchanged from the previous year.

Together, the seven properties were valued at $227.6 million as at Sept 1, against $226.3 million a
year ago.

Their total book value as at June 30, 2008, was $227.1 million.

The revaluations have raised the carrying amount for MI-Reit’s portfolio to $554.1 million, up from $553.6 million reported on June 30, 2008.

MI-Reit has 21 properties in its portfolio - 20 in Singapore and one in Japan. Independent valuations for the remaining 14 properties will be obtained throughout the financial year.

For the first quarter ended June 30, MI-Reit reported a distributable income of $6.62 million, 68 per cent higher than in the same period last year.

This followed a 94 per cent increase in net property income to $9.12 million.

Distribution per unit (DPU) rose 55 per cent year-on-year to 2.35 cents in 1Q09. In a press release last month, MacarthurCook Investment Managers (Asia) said that it expects to deliver a DPU that is in line with recent performance for the coming year.

While the US economic slowdown and global inflation could affect Asia, ‘we expect the demand for industrial properties in Singapore and in the Asian region to remain healthy on the back of strong prospects for Asia, albeit at a less brisk pace’, said CEO and executive director of the Reit manager, Craig Dunstan.

‘Given this economic scenario, organic growth in the portfolio will drive returns in the near future,’ he added.

‘However, we expect to resume our active acquisition growth strategy once capital market conditions improve.’

MI-Reit’s units gained 0.5 cents yesterday to close at 76 cents.

The counter has slid around 29.6 per cent from the start of the year.