The manager of Mapletree Commercial Trust (MCT) has reported 10.5% lower gross revenue of $100.3 million for 1Q20/21 ended June, compared to the $112.1 million last year.
In a July 23 business update, MCT says the decline was mainly due to the rental rebates granted to eligible retail tenants during the quarter, and mitigated by contributions from Mapletree Business City II, which was acquired in November 2019.
Property operating expenses for the quarter increased 9.7% y-o-y.
Net property income (NPI) consequently fell 10.7% y-o-y to $78.9 million, with a 78.6% NPI margin.
As at June 30, committed occupancy for the group’s portfolio stood at 98.2%, with a weighted average lease expiry of 2.6 years.
Sharon Lim, CEO of the manager says, “1Q FY20/21 was impacted by the full force of the eight-week circuit breaker as well as the continued closure of most businesses during the first phase of Singapore’s re-opening from 2 to 18 June 2020. However, MBC, comprising both MBC I and MBC II, continues to provide sustained support and stability to MCT.”
“Although the majority of tenants have resumed operations, we believe it will take some time to get back to pre-COVID-19 levels due to continued work-from-home directives, border closures, social distancing measures, as well as disruptions in manpower and global supply chains”, she adds.
“With the additional facilities secured during the quarter, we now have more than S$1 billion of cash and undrawn committed facilities on hand and are on track to refinance all borrowings due in FY20/21 and FY21/22. Furthermore, MCT is anchored to a well-diversified portfolio that will continue to derive stable cashflows from high quality tenants to ride through this pandemic.”
Units in MCT closed flat at $1.92, prior to the announcement.
