Mapletree Greater China Commercial Trust (MGCCT) delivered stable results for the fourth quarter, as higher rental income was partly offset by higher property tax and finance costs.
Distribution per unit (DPU) grew 1.9 per cent to 1.959 cents for the three months to March 31, said trust manager Mapletree Greater China Commercial Trust Management yesterday.
Quarterly net property income increased 6.1 per cent to $77.48 million, while gross revenue grew 7.9 per cent to $94.78 million.
The rise in turnover was mainly owing to higher rental income from the portfolio's three properties, the trust manager said. The three assets in Greater China - valued at $6.2 billion as at March 31 - are in the MGCCT portfolio.
Fourth-quarter property operating expenses rose 16.7 per cent to $17.3 million, mainly owing to additional property tax of $2.1 million incurred by Gateway Plaza, a Grade A office block with a retail atrium in Beijing.
AT A GLANCE
Q4 GROSS REVENUE: $94.78 million (+7.9%)
Q4 NET PROPERTY INCOME: $77.48 million (+6.1%)
Q4 DISTRIBUTION PER UNIT: 1.959 cents (+1.9%)
DPU for the year to March 31 inched up 1 per cent to 7.32 cents, while net property income rose 2.9 per cent to $285.58 million.
Gross revenue for the year was up 4.2 per cent to $350.63 million.
Unitholders are to get their distribution on May 29.
Demand for retail space at Festival Walk, a retail and office building in Hong Kong, was healthy, despite a "soft retail market".
Although retail sales fell 8.8 per cent compared with a year ago, the mall is fully occupied.
The manager said that Gateway Plaza maintained an occupancy level of 96.9 per cent, despite weakened leasing demand from foreign firms.
It said about 92 per cent of the leases set to expire in the financial year had been "renewed or re-let at an average rental reversion of 10 per cent" at Gateway Plaza, which will undergo renovations.
Sandhill Plaza, a business park in Shanghai that was acquired in June 2015, is fully occupied.
Net asset value per unit was $1.301 as at March 31, compared with $1.239 at the end of March last year.
"Our proactive portfolio management and prudent capital management have yielded stable DPU returns, despite the challenging business environment... We will continue to seek out opportunities to enhance and add to the value of our portfolio," said Ms Cindy Chow, chief executive of the trust manager.
MGCCT units closed two cents higher at $1.06 yesterday.