Mapletree Commercial Trust 3QFY19/20 Financial Results After MBC II Acquisition

Mapletree Commercial Trust has announced their 3QFY19/20 financial results on 22nd January 2020. There are no surprises as all financial results are positive. Income available for distribution increased by 18.0% while Distribution Per Unit (DPU) increased by 5.6%.

It was mentioned that the strong financial performance was driven by the newly acquired Mapletree Business City II (MBC II).

Here are the 3QFY19/20 financial results compared with 3QFY18/19.

3QFY19/20
(S$’000)
3QFY18/19
(S$’000)
Change
Gross Revenue 131,336 112,543 16.7%
Net Property Income 103,298 87,868 17.6%
Distributable Income 79,049 66,992 18.0%
Distribution Per Unit (“DPU”) (cents) 2.46 2.33 5.6%

Debt

As of 31st December 2019, the gearing ratio stood at 33.4%. The average term to maturity of debt is 4.4 years.

Occupancy

Overall portfolio committed occupancy stood at 98.9%.

One of the things that worry me is the decline of shopper traffic. As you can see, shopper traffic declined by 2.2% while tenant sales decreased by 0.5%.

Mapletree Business City II (MBC II)

The acquisition of MBC II seems positive. Below are the increase in DPU, NPI yield and NAV per Unit after the acquisition.

Summary

Overall, Mapletree Commercial Trust has delivered a set of decent results after the acquisition of MBC II. However, I think it is still too early to make a judgement whether the acquisition can continue to be DPU accretive or slow down the growth of the DPU.

Mapletree Commercial Trust currently makes up 11% of my stock portfolio.

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