Mapletree Commercial Trust 1H FY21/22 Financial Results

Mapletree Commercial Trust (Mapletree Business City)

Mapletree Commercial Trust (“MCT”) has reported its 1H FY21/22 Financial Results on 27th October.

MCT currently makes up 10.23% of my stock portfolio. How did MCT fare and is DPU still depressed? Let us take a look below

MCT managed to achieve higher 1H FY21/22 gross revenue and net property income (“NPI”) mainly due to lower rental rebates and compensation from a lease pre-termination at mTower.

A distribution of 4.39 Singapore cents was declared and will be paid on 30th November 2021.

Mapletree Commercial Trust 1H FY21/22 Financial Results

1H FY21/22 distribution per unit (“DPU”) was up 5.3% to 4.39 Singapore cents.

1H FY21/22
(S$’000)
1H FY20/21
(S$’000)
YoY(%)
Gross Revenue 243,722 218,671 11.5%
Net Property Income 189,855 171,459 10.7%
Distributable Amount 146,456 138,422 5.8%
Distribution Per Unit (“DPU”) (cents) 4.39 4.17 5.3%

Occupancy

As of 30th September 2021, overall actual occupancy stood at 93.3%. Committed occupancy stood at 96.0%.

Mapletree Commercial Trust Occupancy 30 Sept 2021

Debt

As of 30th September 2021, the gearing ratio stood at 33.7%. 100% of the assets remain unencumbered. The Moody rating is Baa1 (stable).

MCT has a well-distributed debt maturity profile with no more than 24% of debt due in any financial year.

Mapletree Commercial Trust Debt Maturity Profile 30 Sept 2021

 

Current Dividend Yield

Based on the current share price of S$2.15 and FY20/21 full year distribution of 9.49 Singapore cents, this translate to a current dividend yield of 4.41%.

As you can see from the movement of the share price below, the price has gone up over the past few months which resulted is the lower current dividend yield.

Mapletree Commercial Trust Share Price 5 Nov 2021

Summary of Mapletree Commercial Trust 1H FY21/22 Financial Results

I will like to end this post with the below slide that illustrate the measures imposed by the government to curb the spread of COVID-19 and how it impact shopper traffic and tenant sales.

As you can see, shopper traffic and tenant sales are slowly picking up as Singapore moves towards COVID-19 stabilisation.

Restrictions cannot be forever and I am sure the day COVID-19 is controlled and measures lifted, this will be the catalyst for Mapletree Commercial Trust to fast speed forward.

Mapletree Commercial Trust Shopper Traffic 30 Sept 2021

Why Delfi Limited Share Price Fell

Delfi Limited

Why Delfi Limited share price fell recently? Earlier this year in March, I did an analysis on Delfi Limited (SGX: P34). Back then, I entered into a small position with Delfi Limited. The share price has risen significantly since my purchase and I refrain from topping up since the dividend yield has grown unattractive.

In August, I noticed that the share price has started to decline. A crisis or an opportunity? Let us find out.

On 10th August 2021, Delfi Limited (SGX:P34) released its 1st half 2021 financial results.

As part of their presentation, the management shared that in a number of markets, especially Indonesia, Malaysia and the Philippines, there has been a marked increase in the prevalence of COVID-19 since the start of the year linked to the more infectious Delta-variant.

The evolution of COVID-19 pandemic continues to create uncertainties across their markets.

Why Delfi Limited share price fell recently?

As shared previously in my analysis of Delfi Limited, the Indonesia market makes up 71.5% of its revenue.

Delfi Limited 2019 Revenue Breakdown

In my opinion, what the management shared over the uncertainties due to COVID-19 has caused the investors to panic and thus the investors started selling off their shares in Delfi Limited.

Now, let us look at what went well.

#1 For 1H 2021, Delfi Limited achieved PATMI of US$12.3 million vs. US$10.8 million (+13.7%) over the same period last year.

PATMI stands for Profits After Tax and Minority Interests. PATMI = Net Profit – Taxes – Net profit attributable to minority stakeholders.

#2 Delfi Limited generated a strong Free Cash Flow of US$48.0 million in 1H2021.

The free cash flow Delfi has generated was higher by US$22.3 million compared to same period last year. The company has used a bulk of cash flow to significantly reduce their total borrowings.

#3 Same dividend payout was retained.

An interim dividend of 1.27 US cents (1.71 Singapore cents) per share was declared. This was the same as 1H 2020 in US dollar terms.

Opportunity or Crisis?

Delfi Limited Share Price 22 Oct 2021

Based on the current share price of S$0.74 and 2019 dividend payout of 2.35 US cents (3.2 Singapore cents), this translate to a current dividend yield of 4.32%.

Summary

In my opinion, this is more of an opportunity rather than crisis.

As shared previously, what I like about this small cap stock is its strong cash flow and ability to grow its profit year on year. Despite the COVID-19 pandemic, this does not seem to affect Delfi Limited at all.