SINGAPORE (Jan 24): Mapletree Commercial Trust Management, the manager of Mapletree Commercial Trust, has declared a 3Q DPU of 2.30 cents, up 0.9% from a year ago.
3Q gross revenue rose 0.8% to $109.7 million from $108.8 million mainly due to the higher contribution from VivoCity and MBC I, offset by lower contribution from PSA Building and Mapletree Anson.
Revenue for VivoCity and Mapletree Business City I (MBC I) was $1.2 million and $0.8 million higher than 3Q. Revenue for PSA Building and Mapletree Anson was $0.4 million and $0.7 million lower mainly due to lower occupancy in 3Q.
Property operating expenses were 2.8% lower at $23.7 million mainly due to lower utilities expenses and marketing and promotion expenses, offset by higher staff costs and property taxes.
As a result, net property income rose 1.9% to nearly $86 million. With finance expenses were 4.4% higher at $16.4 million mainly due to higher interest rates, income available for distribution also increased 1.3% to $66.5 million.
As at Dec 31, 2017, 78% of MCT’s total debt of $2.3 billion has been fixed by way of fixed rate debt or interest rate swaps. The average term to maturity of debt was 3.6 years and the weighted average all-in cost of debt was 2.73% per annum. The interest coverage ratio was maintained at approximately 4.8 times.
In its outlook, MCT's manager says the general outlook for the office market looks positive, underpinned by stronger economic fundamentals and with a lower quantum of new supply expected over the medium term.
Meanwhile, demand for business park space is expected to remain steady albeit highly selective, on the back of improving economic fundamentals and emergence of higher tech industries.
Units in MCT closed 1 cent higher at $1.66 on Wednesday.
