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4 Things Mapletree Greater China Commercial Trust’s Management Wants You To Know About Its Business

In late April, Mapletree Greater China Commercial Trust (SGX: RW0U) released its fourth quarter and full year earnings update for its fiscal year ended 31 March 2018 (FY17/18).

As a quick introduction, Mapletree Greater China Commercial Trust invests primarily in properties located in China and Hong Kong. It currently has three properties in its portfolio namely, Festival Walk, Gateway Plaza, and Sandhill Plaza.

The Manager of Mapletree Greater China Commercial Trust had given a presentation on the REIT’s latest results. In the presentation deck, I saw four slides on the REIT’s business that I think investors should pay attention to.

The first slide shows a high-level summary of the REIT’s income statement for FY17/18:


Source: Mapletree Greater China Commercial Trust FY17/18 fourth quarter earnings presentation

We can see that the REIT had a good year in FY17/18 as there was growth in gross revenue, net property income, distributable income, and available distribution per unit. The strong result was driven by higher revenue growth from Festival Walk and Gateway Plaza as a result of higher rental rates. This was offset by a weaker Hongkong dollar and renminbi, and higher property taxes incurred at Gateway Plaza.

The next slide I want to discuss shows a breakdown of the REIT’s occupancy rate by property:


Source: Mapletree Greater China Commercial Trust FY17/18 fourth quarter earnings presentation

We can see that the REIT’s portfolio occupancy was stable year-on-year and had grown sequentially. This is a sign of the stable demand for the REIT’s properties.

The third slide I want to talk about shows the REIT’s rental reversions in each of its properties:


Source: Mapletree Greater China Commercial Trust FY17/18 fourth quarter earnings presentation

Mapletree Greater China Commercial Trust’s investors would be happy to know that all three of the REIT’s properties had delivered positive rental reversions in the last few quarters, including the fourth quarter of FY17/18.

The last slide I want to highlight talks about the REIT’s latest proposed acquisition:


Source: Mapletree Greater China Commercial Trust FY17/18 fourth quarter earnings presentation

Mapletree Greater China Commercial Trust recently proposed to acquire six properties in Japan at a total value of around S$770 million. Amongst the other traits that it can bring to the table for the REIT, the acquisition can help to provide geographical diversification.

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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.