SINGAPORE (Oct 20): The manager of Mapletree Greater China Commercial Trust has declared available distribution per unit (DPU) of 3.714 cents for the 1H ended September, an increase of 2.9% from DPU of 3.610 cents a year ago.
Gross revenue increased by 5.4% to $177.0 million for 1H FY2017/2018, from $168.0 million a year ago.
The increase was mainly due to revenue growth from all three properties in the portfolio – Festival Walk, Gateway Plaza, and Sandhill Plaza – as a result of higher average rental rates.
Gross revenue was also higher in the first half due to the absence of a lower accrued revenue for Gateway Plaza in 1H FY2016/2017, which arose from the uncertainty in the applicable VAT rate prior to obtaining clarification in March 2017.
In addition, MGCCT benefitted in 1H FY2017/2018 from a higher average rate of the Hong Kong dollar against the Singapore dollar.
Net property income grew 4.5% to $142.9 million in 2Q, from $136.7 million a year ago.
As at end September, cash and cash equivalents stood at $195.3 million.
The manager reports that the portfolio has achieved an occupancy rate of 98.2%, as well as healthy average rental reversion for each asset. As of Sept 30, about 81% of its expired or expiring leases in FY17/18 at the portfolio level have been renewed or re-let.
“These reflect the resilience of the assets and the efforts of proactive portfolio management. Going forward, we remain committed to deliver stable long-term returns to our unitholders,” says Cindy Chow, chief executive officer of the manager.
In its outlook, the manager says gross revenue is expected to remain stable for Festival Walk on the back of resilient domestic consumption in Hong Kong.
Average rental reversion at Gateway Plaza in Beijing is expected to continue to grow modestly for leases expiring in FY17/18, while Sandhill Plaza in Shanghai is expected to continue to benefit from a healthy rental reversion.
MGCCT's distribution policy is to distribute on a semi-annual basis. Unitholders can expect to receive the distribution on Nov 20, 2017.
Units of MGCCT closed flat at $1.19 on Friday.
