Mapletree Commercial Trust announces its results for 2QFY15 on 21st October 2015. The Distribution per Unit (“DPU”) for 2Q FY15/16 went up 2.5% to 2.02 cents and Net Property Income (“NPI”) for 2Q FY15/16 grew 5.1%.
VivoCity tenant sales for 2Q FY15/16 went up 5.5% to more than S$225 million for the quarter. If you did not know, VivoCity has launched new retail space at basement one from 15 April 2015 which has probably has contributed to the increase in tenant sales. Nine retailers occupy the new retail space at Basement 1. Two of which are new-to-market retailers: American Eagle Outfitters, a US apparel brand, and Weekends, a multi-brand lifestyle retailer.
Debt Maturity Profile
From the financial slides, we can see that 23% of the debt is due in FY16/17. There is no mention on how Mapletree Commercial is going to refinance the debt when it is due. Most probably, it may be in the form of medium term notes issue similar to FY14/15 to pay off the debt due. Do note that 100% of Mapletree Commercial Trust assets are unencumbered.
Key Financial Indicators
Gearing Ratio is on the high end at 36.4%. But the good thing is that 100% of Mapletree Commercial Trust assets are unencumbered.
Portfolio and Net Property Income
As you can see below, majority of Mapletree Commercial Trust income comes from VivoCity which is a shopping mall. Minority of the income comes from office rental. Personally, I think that the upcoming over supply of office space will have minimum impact on Mapletree Commercial Trust.
Shopper Traffic and Tenant Sales
Given the weak economy, people tend to have less spending power. There are also less tourist travelling to Singapore which probably results in a decline in shopper traffic. We probably will have to wait for the next tourism boom to see a spike in shopper traffic.
Tenant sales increased slightly by 1.6%. I think this is due to the opening of retail space at VivoCity basement one.