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Mapletree Commercial Trust Posts Stellar Results

mapletree commercial trust Mapletree Commercial Trust (SGX: N2IU), or MCT in short, released its 2th Quarter of 2013 results yesterday after markets close. Gross revenue for the quarter increased 27.1% from S$51.79 million to S$65.82 million, while net property income soared 31.4% to S$47.95 million on a year-to-year basis.

Distributable income went up by 29.1% to S$37.32 million and in turn, distribution per unit also was up 16.5% to 1.801 cents. This can be attributed to the rental uplift of more than 20% for leases expiring in FY2013/2014.

The portfolio’s overall weighted average lease expiry (WALE) is at 2.5 years and the average occupancy rate stands at 98.9%, the highest since its listing in April 2011. The shopper traffic at Vivocity also went up 2.4% to 26.7 million over 1H 2013/14 while the tenant sales increased 5.8% to approximately S$426.7 million over the same period.

As at 30 Sept 2013, MCT has a gross debt of S$1.36 billion maturing in the next two years (FY 2014/15). However, the management is exploring options to refinance the debt and is confident that existing bank lines are sufficient to refinance the required quantum. MCT was also not adversely affected by the recent volatility in interest rates with majority of the debt compiled of fixed rate debt, interest rate swaps and caps.

Moody’s Investors Service (“Moody’s”) changed the outlook of MCT’s Baa2 credit rating from stable to positive on 4 October 2013. The rating action subsequently reflects MCT’s enhanced asset quality and improved operating performance although its net gearing is at the high side of 40.8%.

Ms Amy Ng, Chief Executive Officer of MCTM, said, “At VivoCity, various zones have been refreshed with new brands complementing existing ones. We would like to thank our shoppers for endorsing their support for our tenants with higher spend giving us 5.8% higher sales for 1H FY 2013/14 compared to the corresponding period last year. The portfolio occupancy has also improved to 98.9% as at 30 Sep 2013 and the committed occupancy at ARC is now close to 97%. Mapletree Anson has also contributed positively to the portfolio performance.”

At the closing price of S$1.265 on 24th October 2013, Mapletree Commercial trust is trading at 7.56 times earnings. Its annualised distribution yield is 5.49% and the net asset value per unit is S$1.07. Investor can be heartened to know that Mapletree Commercial Trust has delivered a track record of stable income and growth in dividends since its listing from year 2011.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.   Motley Fool Singapore contributor James Yeo doesn’t own shares in any companies mentioned.