What Investors Should Know About Mapletree Greater China Commercial Trust’s Latest Earnings and Valuation

Mapletree Greater China Commercial Trust (SGX: RW0U) is a REIT that owns properties in China and Hong Kong. At the moment, it has three properties in its portfolio: Festival Walk, Gateway Plaza, and Sandhill Plaza.

There are two things about the REIT that investors may want to know about right now: Its latest financial performance and valuation.

Financial performance

The table below shows important items from Mapletree Greater China Commercial Trust’s income statement for the third quarter of its financial year ending 31 March 2018 (FY17/18). The reporting period is from 1 October 2017 to 31 December 2017:

Source: Mapletree Greater China Commercial Trust FY17/18 third quarter earnings press release

We can see that the REIT had a good quarter, as there was growth in gross revenue, net property income, distributable income, and distribution per unit.

In Mapletree Greater China Commercial Trust’s latest earnings update, the CEO of its manager, Cindy Chow, gave some updates on its portfolio and future plans. She said:

“We are pleased to report that MGCCT has recorded steady DPU growth in 3Q FY17/18. With our proactive portfolio management efforts, we have maintained a high portfolio occupancy rate of 96.9%, as well as healthy average rental reversion for each asset. In addition, as we have fixed interest costs for about 75% of MGCCT’s debt and hedged about 78% of FY17/18 expected distributable income to SGD as of 31 December 2017, these have lessened the impact of interest rate increase and exchange rate volatility on DPU.

As announced on 16 January 2018, MGCCT is broadening its investment mandate to include the Japan market. We will continue to evaluate acquisition opportunities to drive further growth of MGCCT, diversify its income source and portfolio geographically, and provide stable long-term returns to our Unitholders.”

It’s worth noting that the REIT has plans to enter the Japanese real estate market given the recent broadening of its investment mandate.


There are two useful valuation metrics for assessing REITs. They are the price-to-book (PB) ratio, and the distribution yield.

The table below shows Mapletree Greater China Commercial Trust’s PB ratio and distribution yield. It also shows the respective averages for the two valuation metrics for the 41 REITs that are in Singapore’s stock market.

Source: SGX Stock Facts

We can see that Mapletree Greater China Commercial Trust is trading at a slight premium to the market, given its lower distribution yield, and nearly identical PB ratio.

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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.