9 Quick Things Investors Should Know About Mapletree Greater China Commercial Trust’s Latest Earnings

In late January, Mapletree Greater China Commercial Trust (SGX: RW0U) released its third quarter earnings report for the financial year ending 31 March 2018 (FY17/18).

As a quick introduction, Mapletree Greater China Commercial Trust has properties in China and Hong Kong. At the moment, the real estate investment trust (REIT) has three properties in its portfolio: Festival Walk, Gateway Plaza, and Sandhill Plaza.

Here are nine things investors should know about the REIT’s latest results:

1. Gross revenue for the reporting quarter grew 0.7% to S$88.5 million while net property income was flat at S$71.4 million.

2. The REIT’s distribution per unit (DPU) was up by 5.1% year-on-year to 1.868 cents.

3. Based on MGCCT’s annualized DPU of 7.443 cents (calculated using its year-to-date DPU of 5.582 cents) and its closing unit price of S$1.19 as of 8 February 2018, the REIT has a trailing distribution yield of 6.3%.

4. As of 31 December 2017, the REIT’s gearing stood at 39.3%, which is a safe distance from the regulatory ceiling of 45%.

5. The REIT’s portfolio had a committed occupancy rate of 96.9% at end-2017.

6. The weighted average lease expiry (by gross rental income) was at 2.7 years as of 31 December 2017. From this figure, 40.7% of the leases will expire by FY18/19, and another 44% of the leases will expire by FY20/21. The rest will expire by FY21/22 and beyond.

7. Festival Walk’s shopper footfall was up by 2.8% year to date for FY17/18 as compared to FY16/17. Similarly, tenant sales was up by 3.9% year-on-year for the period.

8. Mapletree Greater China Commercial Trust is broadening its investment mandate beyond Greater China to include the Japan market. To close, the REIT provided its outlook:

a. Festival Walk: Gross revenue is expected to remain stable. Rental reversion rate for leases expiring in FY17/18 is expected to grow at a moderate pace.

b. Gateway Plaza: Average rental reversion for FY17/18 leases expected to grow modestly.

c. Sandhill Plaza: Expected to continue to benefit from healthy rental reversion for FY17/18.

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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.