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3 Key Slides Investors Should See From Mapletree Commercial Trust’s Latest Results

Mapletree Commercial Trust’s (SGX: N2IU) portfolio consists of five properties that are all located in Singapore. Four of them are commercial buildings, while one is VivoCity, Singapore’s largest mall.

In late July, the REIT released its results for the first quarter of its fiscal year ending 31 March 2018 (FY17/18). Mapletree Commercial Trust had prepared a presentation for its earnings announcement. In the deck of slides, there are three that contain key information about the REIT’s business performance that I think investors should see. Here are the crucial information from the three slides.

The overall result

One of the slides contained a table on how Mapletree Commercial Trust’s gross revenue, net property income, income available for distribution, and distribution per unit (DPU) had changed in the reporting quarter compared to a year ago. Here’s the table:

Source: Mapletree Commercial Trust FY17/18 first quarter earnings presentation

As you can see, there was strong growth in the important metrics during the quarter.

The positive result was driven by the accretive acquisition of Mapletree Business City I (the acquisition was completed on August 2016), as well as growth from the REIT’s existing assets, VivoCity, Mapletree Anson, and PSA Building.

Occupancy rates

The occupancy rate of a REIT’s portfolio is an important indication of the level of demand for its properties. One of the slides in Mapletree Commercial Trust’s presentation deck showed the occupancy rates of its portfolio for the first and second quarters of 2017:

Source: Mapletree Commercial Trust FY17/18 first quarter earnings presentation

We can see that the REIT’s occupancy rate had improved from 97.9% in the last quarter to 98.1% in the reporting quarter.

The debt profile

The debt profile of a REIT gives investors important clues about how the REIT is funded, its sensitivity to the interest rate environment, and how financially risky the REIT is. The following table is Mapletree Commercial Trust’s debt profile that was given in one of the slides:

Source: Mapletree Commercial Trust FY17/18 first quarter earnings presentation

What’s useful to note is that the REIT’s gearing has remained flat at 36.4%, while the interest coverage ratio has remained high at 4.9. Both ratios are some distance away from levels that are generally considered as risky.

A Foolish conclusion

In all, Mapletree Commercial Trust started FY17/18 with a strong set of results, driven by a positive performance across its portfolio of assets. Going forward, the REIT expects its portfolio to remain resilient, supported by manageable expiries in its office/business park properties and VivoCity’s relatively stable performance.”

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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 Lawrence Nga doesn’t own shares in any companies mentioned.