Mapletree Greater China Commercial Trust posts 5.8% jump in Q2 DPU

The higher quarterly DPU was mainly due to increased average rental rates from Festival Walk in Hong Kong (pictured) and Gateway Plaza in Beijing, China.
The higher quarterly DPU was mainly due to increased average rental rates from Festival Walk in Hong Kong (pictured) and Gateway Plaza in Beijing, China.PHOTO: MGCCT

SINGAPORE - Mapletree Greater China Commercial Trust (MGCCT) has reported a 5.8 per cent jump in distribution per unit (DPU) for the second quarter to 1.868 cents.

This brings DPU for the half year to Sept 30 to 3.714 cents - 2.9 per cent higher than the 3.61 cents in the same period a year earlier.

The higher quarterly DPU was mainly due to increased average rental rates from Festival Walk in Hong Kong and Gateway Plaza in Beijing, China, and lower accrued revenue for Gateway Plaza in the second quarter of 2017 due to the uncertainty in the applicable value-added tax rate then, said the manager on Friday (Oct 20).

Distributable income for the three months ended Sept 30 expanded 7 per cent to $52.5 million.

Gross revenue rose 6.1 per cent to $88.1 million, while net property income was up 5.4 per cent to $70.9 million.

Earnings per unit rose to 1.45 cents from 1.379 cents previously. Net asset value per unit stood at $1.246 as at Sept 30, lower than $1.301 as at Mar 31.

Ms Cindy Chow, chief executive of the manager, said the trust's portfolio achieved an occupancy rate of 98.2 per cent, as well as healthy average rental reversion for each asset.

About 81 per cent of its expired/expiring leases have been renewed or re-let as at Sept 30. "These reflect the resilience of the assets and the efforts of proactive portfolio management," said Ms Chow.

The trust's gearing ratio was at 38.5 per cent, down from the 39.2 per cent as at March 31, while the average term to maturity for debt was 3.42 years, compared with 3.73 years previously.

MGCCT units closed unchanged at $1.19 on Friday, before the results were announced.