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

In late January, Mapletree Commercial Trust (SGX: N2IU) released its third quarter results for the financial year ended 31 March 2018 (FY17/18).

As a quick introduction, Mapletree Commercial Trust 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.

Without further ado, here are nine things investors should know about the REIT’s latest earnings:

1. Gross revenue for the reporting quarter grew 0.8% to S$109.7 million while net property income increased by 1.9% to S$86.0 million.

2. Distribution per unit (DPU) was up by 0.9% year-on-year to 2.30 cents.

3. Based on the REIT’s annualized DPU of 9.03 cents (calculated using the year-to-date DPU of 6.77 cents), and its closing unit price of S$1.56 as of 8 February 2018, it had a trailing distribution yield of 5.8%.

4. As of 31 December 2017, the REIT’s gearing stood at 36.3%, which is a safe distance from the regulatory ceiling of 45%.

5. The REIT’s portfolio had a committed occupancy rate of 98.7% at end-2017.

6. The weighted average lease expiry (by gross rental revenue) was at 2.7 years as of 31 December 2017. Of this, the office/business park segment had a weighted average lease expiry of 3.4 years while the retail segment had a weighted average lease expiry of 2.0 years.

7. Vivocity’s shopper traffic was down by 1.2% year-to-date for FY17/18 compared the same period last year.

8. The REIT has an asset enhancement initiative (AEI) to add a public library on Level 3, and to extend Basement 1 of VivoCity. Both AEIs are on track for completion by the third quarter of FY18/19.

9. The REIT managers’s CEO, Sharon Lim, provided the following comments on the quarter:

“MCT [Mapletree Commercial Trust] has continued to deliver steady performance for 3Q FY17/18 amid headwinds in the operating environment. Underscoring our effort on active asset management, contribution from VivoCity and MBC I were higher and we achieved sustained savings in operating expenses. As a result, MCT recorded resilient growth in NPI and DPU was up 0.9% year-on-year.”

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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.