Mapletree Commercial Trust DPU Increases For 3Q FY17/18

Mapletree Commercial Trust Logo

If you have followed my blog, you will know that I increased my stake in Mapletree Commercial Trust to 12% of my stock portfolio last year.

As Mapletree Commercial Trust has released their third quarter FY17/18 financial results recently, I am writing this post to do a quick check on overall performance. Overall, I am very pleased with their financial results especially that they have achieved a DPU growth of 0.9%. The manager reported higher revenue due to higher contribution from VivoCity and Mapletree Business City I (“MBC I”).

Here are the 3QFY17/18 financial results compared with 3QFY16/17.

3QFY17/18
(S$’000)
3QFY16/17
(S$’000)
Change
Gross Revenue 109,669 108,761 0.8%
Net Property Income 85,955 84,360 1.9%
Distributable Income 66,454 65,586 1.3%
Distribution Per Unit (“DPU”) (cents) 2.30 2.28 0.9%

If we compare the results year to date, I personally think the financial results are stellar. Gross Revenue increased by 20.1%, Net Property Income (“NPI”) by 21.8% and Distribution Per Unit (“DPU”) increased by 6.4%!

YTD FY17/18
(S$’000)
YTD FY16/17
(S$’000)
Change
Gross Revenue 324,645 270,220 20.1%
Net Property Income 254,560 209,058 21.8%
Distributable Income 195,520 162,686 20.2%
Distribution Per Unit (“DPU”) (cents) 6.77 6.36 6.4%

Debt

As of 31st December 2017, the gearing ratio was 36.3%, a reduction compared to 37% as of 31st December 2016. 100% of the assets are also unencumbered. I attributed the management of debt due to robust capital management by the manager of Mapletree Commercial Trust.

Asset Enhancement Initiative

Like I mentioned previously, the addition of public library is going to attract more shoppers as they will eat and shop after borrowing books from the library. This is especially true for parents with kids. The AEI is in progress and on track for completion in phases by 3Q FY18/19. This will definitely give the DPU a boost.

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