Mapletree Greater China Commercial Trust's Sandhill Plaza (Photo: Colliers International)Mapletree Greater China Commercial Trust's Sandhill Plaza (Photo: Colliers International)

Mapletree Greater China Commercial Trust (SGX:RW0U) announced on 29 January that it has achieved a distribution per unit (DPU) of 1.854 Singapore cents for its 3Q FY15/16, an increase of 11.6% year-on-year.

This was on the back of a 19.8% year-on-year growth in gross revenue which came in at SGD88.2 million. Correspondingly net property income (NPI) rose 22.3% to SGD72.5 million compared to 3Q FY14/15.

“The year-on-year growth in revenue and NPI was mainly due to an enlarged portfolio with the acquisition of Sandhill Plaza, strong rental uplifts from both Festival Walk and Gateway Plaza, and appreciation of HKD and RMB against SGD”, said the Singapore-listed retail and office REIT in a statement on the results.

Portfolio occupancy as at 31 December 2015 was at 98.7% while weighted average lease expiry (WALE) by gross rental income is at 2.2 years. According to the REIT, it has to date renewed or replaced 92% of the portfolio leases due for expiry in FY15/16.

However the REIT’s aggregate leverage increased marginally from 41.0% as at 30 September 2015 to 41.4% as at 31 December 2015. Average all-in cost of debt stood at 2.67% as at 31 December 2015 from 2.64% as at 30 September 2015 while interest coverage ratio is at 3.9 times.

On outlook for the quarters ahead, the REIT said that it expects shopping malls in Hong Kong that focus on affordable rather than luxury brands to remain relatively resilient given healthy domestic consumption.

“In Shanghai, the government’s easing of restrictions on foreign visas and residence permits so as to attract more multinational companies, its support for entrepreneurship and innovation, and the improvements to transport infrastructure are expected to further increase demand for business park properties”, the REIT added.

Units of Mapletree Greater China Commercial Trust finished the trading day 1.2% higher on the Singapore Exchange from its previous close to end at SGD0.84.

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.