Mapletree Commercial Trust property, ARC, in Singapore (Photo: REITsWeek)

Singapore-focused mixed office and retail REIT Mapletree Commercial Trust (MCT) (SGX:N2IU) has announced a distribution per unit (DPU) of 1.97 Singapore cents for its 2Q FY14/15. This is a year-on-year increase of 9.4% when compared to the 1.8 Singapore cents paid out for 2Q FY13/14.

Gross revenue and net property income (NPI) for the period grew 6.5% and 9.2% to SGD138.6 million and SGD103.8 million respectively. Property operating expenses decreased by about 1% to 34.8 million.

The REIT has attributed the quarter’s results primarily to the persistent success of its its retail mall complex in southern Singapore, VivoCity. The property’s gross revenue and NPI for 1H
FY14/15 rose 8.0% and 11.7% year-on-year respectively.

“While the market conditions have presented challenges for retailers and F&B operators in general over the past few quarters, VivoCity is still well-received by shoppers and well-supported by our tenants”, said Amy Ng, CEO for the manager of MCT, adding that the REIT is planning an asset enhancement initiative (AEI) at the property to create about 15,000 square feet of new retail space at basement one of the building.

“The AEI work involves the conversion of car park and ancillary space as well as decanting some lower yielding space of the mall into prime retail space with high shopper traffic”, said the
REIT. Work on the AEI is expected to commence in 3Q FY14/15 and complete by the end of 1H FY15/16.

MCT’s aggregate leverage ratio for the quarter was reduced to 38.0% from 40.8% a
year ago following a partial repayment of its debt. The average debt to maturity of MCT’s gross borrowings stands at 3.1 years.

Units of MCT are currently listed on the Singapore Exchange at SGD1.46.

Mapletree Commercial Trust
Mapletree Commercial Trust property, ARC, Singapore

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.