Mapletree Commercial Trust Declares DPU of 2.31 cents for 4QFY18/19

I consider this as one gem I have in my stock portfolio. Mapletree Commercial Trust currently makes up 10% of my stock portfolio. On 23rd April 2019, Mapletree Commercial Trust announced their 4QFY18/19 financial results. 4Q FY18/19 gross revenue and Net Property Income (NPI) grew 3.7% and 3.9% respectively. Income available for distribution was up 3.1%.

Here are the 4QFY18/19 financial results compared with 4QFY17/18.

4QFY18/19
(S$’000)
4QFY17/18
(S$’000)
Change
Gross Revenue 112,899 108,880 3.7%
Net Property Income 87,560 84,285 3.9%
Distributable Income 66,861 64,839 3.1%
Distribution Per Unit (“DPU”) (cents) 2.31 2.27 1.8%

All financial results are positive!

Here are the full year FY18/19 financial results compared with FY17/18.

FY18/19
(S$’000)
FY17/18
(S$’000)
Change
Gross Revenue 443,893 433,525 2.4%
Net Property Income 347,627 338,845 2.6%
Distributable Income 264,027 260,359 1.4%
Distribution Per Unit (“DPU”) (cents) 9.14 9.04 1.1%

Debt

As of 31st March 2019, the gearing ratio stood at 33.1%. The average term to maturity of debt is 3.6 years.

Occupancy

Overall portfolio committed occupancy stood at 98.5%.

Dividend Yield

Based on the dividend payout of 9.14 cents and current stock price of $1.92, this translates to a dividend yield of 4.76%. This means Mapletree Commercial Trust is considered expensive right now as most retail REITs should offer a dividend yield above 5%.

Catalyst

Giant at the basement has been replaced by FairPrice. FairPrice has started fit-out works for an integrated space of estimated 91,000 square feet while the remaining estimated 24,000 square feet of recovered anchor space on Level 1 and Basement 2 has been fully committed. The enhancement work is scheduled for completion by 2Q FY19/20, the entire changeover will deliver estimated 40% Return On Investment (ROI) in addition to positive rental uplift.

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