Mapletree trust posts 5.8% jump in Q2 DPU

Sandhill Plaza, a business park project in Shanghai. MGCCT's portfolio is made up of three commercial properties in Greater China, with a total lettable area of 2.6 million sq ft.
Sandhill Plaza, a business park project in Shanghai. MGCCT's portfolio is made up of three commercial properties in Greater China, with a total lettable area of 2.6 million sq ft.PHOTO: COLLIERS INTERNATIONAL; MGCCTM

MGCCT benefits from higher average rental rates for Hong Kong and Beijing properties

Higher average rental rates for Hong Kong and Beijing properties helped Mapletree Greater China Commercial Trust (MGCCT) deliver a 5.8 per cent jump in second-quarter distribution per unit (DPU).

DPU for the three months to Sept 30 came in at 1.868 cents, up on the 1.765 cents in the same period a year ago.

The improved performance was also due to lower accrued revenue for the Beijing development in the same quarter previously, given the uncertainty in the applicable value-added tax rate then, said the manager yesterday.

DPU for the half year to Sept 30, as a result, rose 2.9 per cent to 3.714 cents. During the quarter, distributable income rose 7.1 per cent to $52.5 million.

Gross revenue expanded 6.1 per cent to $88.1 million, thanks in part to higher average rental rates at Festival Walk in Hong Kong and Gateway Plaza in Beijing. The higher average rate of Hong Kong dollar and Chinese yuan against the Singdollar also helped.

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, while net asset value per unit stood at $1.246 as at Sept 30, lower than $1.301 as at Mar 31.

  • AT A GLANCE

  • Distributable income: $52.5 million (+7.1%)

    Net property income: $70.9 million (+5.4%)

    Distribution per unit: 1.868 cents (+5.8%)

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

MGCCT's portfolio is made up of three commercial properties in Greater China with a total lettable area of 2.6 million sq ft and a total book value of $5.96 billion as at Sept 30.

Festival Walk maintained full occupancy and steady growth, although Gateway Plaza's occupancy level declined to 95.8 per cent from 98.8 per cent as at June 30, mainly due to softer demand for both new and renewal spaces in the second quarter. Sandhill Plaza in Shanghai achieved full occupancy, up from 97.5 per cent a quarter ago.

Ms Chow noted that about 81 per cent of the portfolio's expired or expiring leases have been renewed or re-let as at Sept 30. "These reflect the resilience of the assets," she said.

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 yesterday, before the results were announced.

A version of this article appeared in the print edition of The Straits Times on October 21, 2017, with the headline 'Mapletree trust posts 5.8% jump in Q2 DPU'. Print Edition | Subscribe