Singapore-listed Retail and Office REIT Mapletree Commercial Trust (MCT) (SGX:N2IU) has announced a DPU of 6.487 cents for FY 2012/13. This beats the originally forecasted DPU at IPO of 5.42 cents by 19.7 percent. When compared against against FY 2011/12 after adjusting for the equivalent period, this translates into an overall DPU increase of 14.9 percent. MCT’s DPU for 4Q FY 2012/13 stands at 1.737 cents. Comparing against 4Q FY 2011/12, DPU has increased by 11.8 percent.

Occupancy at ARC has improved to 80.4 percent from 50.3 percent a year ago. 

Ms Amy Ng, Chief Executive Officer of the Manager for MCT, said, “The newly acquired Mapletree Anson further boosted the portfolio revenue and NPI for the 4QFY13/14. In FY 2012/13, we also successfully raised close to S$900 million of equity, notes and bank facilities to fund acquisitions and refinance existing debt, demonstrating the ability to access a wide spectrum of capital providers at competitive rates. With the issuance of the S$70m 8-year notes on 12 April 2013, the average term to maturity of MCT’s debt has been extended to 3.5 years, up from 2.4 years at the end of the previous financial year. MCT’s market capitalization grew about 70 percent from IPO to S$2.8 billion as at 31 March 2013.”

Leases that expired in FY 2012/13 for its retail property VivoCity have been renewed or re-let with average fixed rent uplift of 33.1 percent. Despite some weakness in the general retail sales in Singapore and a significant number of tenants undergoing fit-out during the year, shopper traffic and tenant sales at the mall increased 3.0 percent and 3.7 percent year-on-year respectively. VivoCity’s Gross Revenue and Net Property Income for FY 2012/13 exceeded forecast by 7.1 percent and 12.4 percent respectively.

MCT's offices at the PSA Building ended that year with committed occupancy of 100 percent, an improvement over the 92.6 percent occupancy as at 31 March 2012. All leases expiring in FY 2012/13 have been renewed or re-let with average rental uplift of 44.3 percent.

Adjoining retail complex ARC has also seen its occupancy increased to 80.4 percent, up from 50.3 percent as at 31 March 2012, with committed occupancy reaching 81.9 percent. Overall, Gross revenue and Net Property Income (NPI) at PSA Building for FY 2012/13 exceeded the original forecast at IPO by 8.0 percent and 8.8 percent respectively.

The acquisition of Mapletree Anson, a 19-storey premium office building located in the central business district was completed on 4 February 2013 and the acquisition and related costs were part-financed through an equity private placement of 192 million new units at S$1.17 per new unit to raise S$225 million, and part-financed with S$461.8 million bank borrowing. MCT has not given figures on the occupancy of the property.

MCT’s portfolio currently comprises of shopping mall VivoCity, office properties Bank of America Merrill Lynch HarbourFront, PSA Building and Mapletree Anson. These four assets have a total Net Lettable Area (NLA) of 2.1 million square feet and are valued at S$3,831.2 million in aggregate as at 31 March 2013. Units of MCT are currently trading up a percentage point at S$1.42.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.