Mapletree Commercial Trust DPU Grew 1.3% for 2QFY18/19

This is one REIT that give you no surprises. It has been almost a year since I wrote Why I Bought Into Mapletree Commercial Trust. Today, Mapletree Commercial Trust has announced their 2QFY18/19 financial results. Distribution Per Unit (“DPU”) grew by 1.3% to 2.27 Singapore cents driven by higher contribution from VivoCity, MBC I and MLHF.

Mapletree Commercial Trust’s flagship shopping mall, VivoCity achieved healthy growth in shopper traffic and tenant sales of 5.8% and 2.8% respectively in 2Q FY18/19. In addition, the speculation in Investing Note forum that the hypermart will be replaced came true. FairPrice will replace VivoMart with a new integrated concept by 1H FY19/20. This should further boost shopper traffic at VivoCity.

The overall portfolio committed occupancy stood at 98.7% which I think is overall healthy.

Here are the 2QFY18/19 financial results compared with 2QFY17/18.

2QFY18/19
(S$’000)
2QFY17/18
(S$’000)
Change
Gross Revenue109,918107,2102.5%
Net Property Income86,26184,4242.3%
Distributable Income65,56464,6911.3%
Distribution Per Unit (“DPU”) (cents)2.272.241.3%

All financial results are positive! Thus, what is there to complain about?

Will DPU Further Improve?

With the completion of the B1 extension, the mall is able to house more tenants, thus further improving its Net Property Income. The library at level 3 is also on target to be ready by 2HFY18/19. Both are potential catalysts for Mapletree Commercial Trust to further improve its distribution per unit in upcoming quarters.

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

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