SINGAPORE (Apr 24): The manager of Mapletree Commercial Trust (MCT) reported 4Q19 DPU of 2.31 cents, 1.8% higher than 2.27 cents in 4Q18.
Income available for distribution increased by 3.1% y-o-y to $66.9 million from $64.8 million a year ago.
This brings FY19 DPU to 9.14 cents, 1.1% higher than 9.04 cents recorded in FY18.
MCT’s current portfolio comprises five properties in Singapore, namely VivoCity, PSA Building, Mapletree Anson and Bank of America Merrill Lynch HarbourFront (MLHF).
During the quarter, gross revenue saw a 3.7% growth to $112.9 million compared to $108.9 million in the previous year, largely driven by higher contribution from VivoCity, PSA Building and MLHF.
VivoCity saw a $2.5 million increase in 4Q19 revenue, driven mainly mainly by higher rental income from new and renewed leases, achieved together with the completed asset enhancement initiatives (AEI) and the effects of the step-up rents in existing leases.
Revenue for PSA Building was $1.4 million higher, mainly due to higher rental income from renewed leases and higher other revenue.
Revenue for MLHF was $0.2 million higher mainly due to full occupancy in 4Q19.
The increase in gross revenue was partially offset by a drop in revenue for MBC, which was lower by $0.1 million, mainly due to compensation sum received from pre-termination of lease in 4Q18.
Property operating expenses increased 3.0% y-o-y to $25.3 million, bringing net property income for 4Q19 to $87.6 million, 3.9% higher than $84.3 million a year ago.
The trust recorded foreign exchange gains of $1.3 million compared to a loss of $3.8 million last year.
However, net change in fair value of financial derivatives recorded a loss of $1.2 million compared to gains of $4.1 million in the previous year.
As at Mar 31, the trust’s committed occupancy of its portfolio was 98.5%.
On the outlook, the manager expects MCT’s portfolio to remain resilient given VivoCity’s strong positioning and consistent performance, as well as the manageable lease expiries in MCT’s office/business park properties.
Sharon Lim, CEO of the manager says, “Despite the transitory impact and downtime from the AEI and changes, VivoCity attracted a new record of 55.2 million shoppers in FY19.”
As at 12.00pm, units in MCT are trading at $1.84.
