Mapletree Commercial Trust has released its 2HFY20/21 and full year FY20/21 financial results on 27th April 2021. I was surprised that it was able to increase its DPU despite its retail suffering from the impact of COVID-19 pandemic.
This is all thanks to the government grants and Mapletree Business City. How did Mapletree Commercial Trust fare? Let us take a look below.
2H FY20/21 Financial Results
The Gross revenue before government grant was 1.5% lower at S$25.8 mil in 2H FY20/21 as compared to S$26.1 million in 2H FY19/20. Gross revenue rose 0.6% after government grant.
Net Property Income rose 1.8% year-on-year mostly due to Mapletree Business City (“MBC”) II’s full period contribution and tapering of COVID-19 rental rebates.
2H FY20/21 distribution per unit (“DPU”) up 57.9% to 5.32 Singapore cents, includes part release of the retained cash carried forward from 4Q FY19/20.
| 2H FY20/21 (S$’000) | 2H FY19/20 (S$’000) | YoY(%) | |
| Gross Revenue | 260,326 | 258,656 | 0.6% |
| Net Property Income | 205,551 | 201,869 | 1.8% |
| Distributable Amount | 176,298 | 109,147 | 61.5% |
| Distribution Per Unit (“DPU”) (cents) | 5.32 | 3.37 | 57.9% |
FY20/21 Full Year Financial Results
MBC II’s maiden full year contribution provided cushion against COVID-19 impact. Full year Distribution Per Unit (DPU) totalled 9.49 Singapore cents, up 18.6% year-on-year.
| FY20/21 (S$’000) | FY19/20 (S$’000) | YoY(%) | |
| Gross Revenue | 478,997 | 482,825 | (0.8)% |
| Net Property Income | 377,010 | 377,940 | 0.2% |
| Distributable Amount | 314,720 | 243,218 | 29.4% |
| Distribution Per Unit (“DPU”) (cents) | 9.49 | 8.00 | 18.6% |
Occupancy
Overall portfolio committed occupancy stood at 97.1%. The committed occupancies for mTower and MCT’s portfolio would be 79.7% and 95.9% respectively assuming the lease pre-termination has occurred before 31st March 2021 and the space had remained uncommitted as of 31st March 3021.
Debt
Gearing ratio stood at 33.3% which is currently healthy. Average Term to Maturity of Debt stood at 4.4 years.
The best thing is 100% of the assets remain unencumbered.
Current Dividend Yield
Based on the full year dividend payout of 9.49 cents and current share price of S$2.19, this translate to a current dividend yield of 4.33%.
Summary
I am glad that Tenant sales have recovered to more than 86% of 2019 pre-COVID levels. At current dividend yield of 4.33%, it is still attractive to buy into Mapletree Commercial Trust.
The retail sector has yet to reach full recovery as this is highly dependent on the reopening of
Singapore’s borders. However, the retail sector is expected to bottom out in late 2021 and potentially recover gradually from 2022. Competition from e-commerce and tight labour supply will continue to pose challenges.