Mapletree North Asia Commercial Trust sees 2Q DPU edge up by 0.6% to 1.937 cents

This brings DPU for 1H19/20 to 3.887 cents, some 2.1% higher than DPU of 3.807 cents in the corresponding period a year ago.

Distributable income for 2Q19/20 grew 1.5% to $61.7 million, from $60.8 million a year ago.

2Q19/20 gross revenue was 0.9% higher year-on-year at $105.5 million, mainly due to higher rental income from Festival Walk, which made up 62.1% of the portfolio gross revenue during the quarter, and the higher average rate of the HK dollar and the Japanese yen.

Property operating expenses dipped 1.0% during the quarter to $20.8 million, due to lower marketing and promotion expenses in Festival Walk and Gateway Plaza, and the lower average rate of the renminbi.

Consequently, net property income rose 1.3% to $84.7 million in 2Q19/20, compare to $83.6 million a year ago.

As at end-September, cash and cash equivalents stood at $166.1 million.

MNACT’s current portfolio comprises nine commercial properties in China, Hong Kong and Japan, with a total lettable area of 4.2 million sqft and a total book value $7.67 billion as at end-September.

Committed occupancy stood at 98.9% as at Sept 30, 2019. Notably, Festival Walk and its Japan properties saw 100% committed occupancy.

“Amidst the uncertainties in the market and protests in Hong Kong, we have maintained our focus on portfolio resilience, and achieved steady distributions for unitholders,” Cindy Chow, CEO of the manager, says in a statement accompanying the results announcement on Oct 25.

“We will continue to manage the uncertainties, execute active asset management, and actively pursue acquisition of quality and DPU-accretive assets in China and Japan to grow the portfolio and to provide diversified and sustainable income streams,” she adds.

As at 11.37am on Oct 29, units in MNACT are trading 2 cents higher, or up 1.6%, at $1.28.