Mapletree Commercial Trust's DPU up 12% in Q4

The VivoCity mall, one of five properties that make up MCT's portfolio, continued to do well, posting 8.9 per cent year-on-year growth in shopper traffic and a 0.4 per cent rise in tenant sales in the fourth quarter.
The VivoCity mall, one of five properties that make up MCT's portfolio, continued to do well, posting 8.9 per cent year-on-year growth in shopper traffic and a 0.4 per cent rise in tenant sales in the fourth quarter.PHOTO: MCT

Its gets boost from acquisition of Mapletree Business City 1 and property assets' strong showing

Strong performance from some portfolio assets boosted distribution per unit (DPU) at Mapletree Commercial Trust (MCT) in the fourth quarter.

DPU for the three months to March 31 was 2.26 cents, up 11.9 per cent from the 2.02 cents recorded a year earlier, trust manager Mapletree Commercial Trust Management said yesterday.

This brought full-year DPU to 8.62 cents, 6 per cent higher than the previous year.

Fourth-quarter net property income rose 51.2 per cent year on year to $83.2 million, while revenue surged 47.3 per cent to $107.5 million.

"The operating environment has been challenging as the industry faces rising headwinds from volatilities in the macro-environment and softer overall demand. Nonetheless, our portfolio has remained resilient," said Ms Sharon Lim, chief executive of the trust manager.

Income available for distribution climbed to $64.6 million in the fourth quarter, up by 50.4 per cent from the corresponding period a year ago.

  • AT A GLANCE

    GROSS REVENUE: $107.5 million (+47.3%)

    NET PROPERTY INCOME: $83.2 million (+51.2%)

    DISTRIBUTION PER UNIT: 2.26 cents (+11.9%)

The trust manager attributed the better fourth-quarter performance to the accretive acquisition of Mapletree Business City I, as well as positive contributions from VivoCity mall, Mapletree Anson and PSA Building.

These four properties, plus the Bank of America Merrill Lynch HarbourFront building, make up MCT's portfolio, valued at $6.3 billion as at March 31.

The trust manager said the committed occupancy of the overall portfolio was 98.8 per cent at the end of its fiscal fourth quarter.

The VivoCity mall continued to do well, posting 8.9 per cent year-on-year growth in shopper traffic and a 0.4 per cent rise in tenant sales in the fourth quarter.

The trust manager noted that shopper traffic at 55.8 million and tenant sales of $951.8 million for the full year were record highs.

Refurbishment on basement two and level three at VivoCity has been completed and work has started on level one and two to convert about 9,200 sq ft of space into speciality stores.

"The added space has been fully committed, providing for current tenants who are expanding as well as new-to-mall brands," it said.

The $2.8 million refurbishment is expected to contribute about 25 per cent in returns when it is completed and operations have stabilised.

Quarterly earnings per unit was 6.77 cents compared with the restated 8.29 cents a year earlier.

Net asset value per unit was $1.38 as at March 31, up from $1.30 at the end of March last year.

MCT booked a 32.4 per cent year-on-year increase in full-year net property income at $292.3 million, with gross revenue of $377.7 million, which was 31.3 per cent higher than the previous year.

The counter closed 1.5 cents higher to $1.57 on Tuesday before the earnings were announced.

A version of this article appeared in the print edition of The Straits Times on April 26, 2017, with the headline 'Mapletree Commercial Trust's DPU up 12% in Q4'. Print Edition | Subscribe