3 Key Things That Investors Should Know From Mapletree Commercial Trust’s Latest Earnings Presentation

Mapletree Commercial Trust (SGX: N2IU) is a Singapore-focused real estate investment trust (REIT) that owns five office and retail assets in total. Its portfolio consists of VivoCityMapletree Business City I (MBC I), PSA BuildingMapletree Anson and Bank of America Merrill Lynch HarbourFront.

The REIT has recently reported its third quarter earnings for the financial year ending 31 March 2018 (FY17/18). We will take look at three useful slides from the REIT’s latest result presentation.

The first slide covers the REIT’s financial figures.

Source: Mapletree Commercial Trust’s earnings result presentation

Overall, we can see that all its key figures came in stronger this quarter, as compared to the same period last year. Gross revenue inched up 0.8% while net property income was 1.9% higher year-on-year. For unitholders, the distribution per unit was up 0.9% to 2.3 cents. Growth was driven by VivoCity and MBCI.

The next slide summarizes the occupancy rate for the individual properties.

Source: Mapletree Commercial Trust’s earnings result presentation

As investors, we would prefer to see all its portfolio properties are fully rented. For Mapletree Commercial Trust, the latest committed occupancy rates were marginally lower compared to a year ago. On a positive note,  the REIT’s occupancy as of 31 December 2017 was higher compared to the previous quarter’s occupancy rate.

For the third slide, we look at Mapletree Commercial Trust’s rental reversions.

Source: Mapletree Commercial Trust’s earnings result presentation

High occupancy is preferred, and as investors, we would also like to see the properties rented out at higher rates over time. For Mapletree Commercial Trust, we can see that the retail segment performed well with 2.3% positive rental rate increase. However, the office and business park segment delivered a negative 9.5% rental reversion for FY17/18’s year-to-date.

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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.