MCT posts stable Q4 distribution

Improved rental returns from VivoCity and a complex in Alexandra gave Mapletree Commercial Trust (MCT) a boost in the fourth quarter.

Distribution per unit (DPU) crept up to 2.27 cents from 2.26 cents a year earlier. This will be paid on May 31.

Income available for distribution for the three months to March 31 rose 0.4 per cent to $64.8 million.

Gross revenue edged up 1.3 per cent to $108.9 million, while net property income increased 1.2 per cent to $84.3 million from the previous year.

This was due to higher contributions from VivoCity and Mapletree Business City I (MBC I) in Alexandra, thanks to the step-up rents in existing leases.

Bank of America Merrill Lynch HarbourFront (MLHF) recorded higher occupancy and rents, while Mapletree Anson and PSA Building saw reduced contributions from lower occupancy.

  • AT A GLANCE

  • GROSS REVENUE: $108.9 million (+1.3%)

    NET PROPERTY INCOME: $84.3 million (+1.2%)

    DISTRIBUTION PER UNIT: 2.27 cents (+0.4%)

DPU for the full year rose to 9.04 cents from 8.62 cents, as income available for distribution increased 14.6 per cent to $260.4 million from the previous year.

Gross revenue for the year advanced 14.8 per cent to $433.5 million, while net property income expanded 15.9 per cent to $338.8 million. This was due to the full-year contribution from MBC I, a $51.2 million boost from the step-up rents in existing leases, and higher contributions from MLHF and VivoCity, which has completed some renovations. However, PSA Building and Mapletree Anson had lower occupancy.

MCT's highest contributing asset, VivoCity, saw sales inch up 0.7 per cent to $958.2 million in the year, although shopper traffic fell 1.4 per cent to 55 million. Its committed occupancy as of March 31 stood at 99.8 per cent. More work on two levels is ongoing.

Overall, the portfolio achieved a 0.6 per cent rental reversion in the year.

MCT expects the retail market to do better due to an improved economic outlook, even though "rental recovery will remain selective and will not be felt evenly across all malls".

It said the medium-term outlook for offices is positive due to signs of improved business confidence and healthy per-commitments from new developments.

MCT units ended unchanged at $1.60 yesterday.

A version of this article appeared in the print edition of The Straits Times on April 25, 2018, with the headline 'MCT posts stable Q4 distribution'. Print Edition | Subscribe