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

Mapletree Commercial Trust 2HFY20/21 Financial Results

Mapletree Commercial Trust VivoCity

Mapletree Commercial Trust has released its 2HFY20/21 and full year FY20/21 financial results on 27th April 2021. I was surprised that it was able to increase its DPU despite its retail suffering from the impact of COVID-19 pandemic.

This is all thanks to the government grants and Mapletree Business City. How did Mapletree Commercial Trust fare? Let us take a look below.

2H FY20/21 Financial Results

The Gross revenue before government grant was 1.5% lower at S$25.8 mil in 2H FY20/21 as compared to S$26.1 million in 2H FY19/20. Gross revenue rose 0.6% after government grant.

Net Property Income rose 1.8% year-on-year mostly due to Mapletree Business City (“MBC”) II’s full period contribution and tapering of COVID-19 rental rebates.

2H FY20/21 distribution per unit (“DPU”) up 57.9% to 5.32 Singapore cents, includes part release of the retained cash carried forward from 4Q FY19/20.

2H FY20/21
(S$’000)
2H FY19/20
(S$’000)
YoY(%)
Gross Revenue 260,326 258,656 0.6%
Net Property Income 205,551 201,869 1.8%
Distributable Amount 176,298 109,147 61.5%
Distribution Per Unit (“DPU”) (cents) 5.32 3.37 57.9%

FY20/21 Full Year Financial Results

MBC II’s maiden full year contribution provided cushion against COVID-19 impact. Full year Distribution Per Unit (DPU) totalled 9.49 Singapore cents, up 18.6% year-on-year.

FY20/21
(S$’000)
FY19/20
(S$’000)
YoY(%)
Gross Revenue 478,997 482,825 (0.8)%
Net Property Income 377,010 377,940 0.2%
Distributable Amount 314,720 243,218 29.4%
Distribution Per Unit (“DPU”) (cents) 9.49 8.00 18.6%

Occupancy

Overall portfolio committed occupancy stood at 97.1%. The committed occupancies for mTower and MCT’s portfolio would be 79.7% and 95.9% respectively assuming the lease pre-termination has occurred before 31st March 2021 and the space had remained uncommitted as of 31st March 3021.

Mapletree Commercial Trust Occupancy 2H FY2021

Debt

Gearing ratio stood at 33.3% which is currently healthy. Average Term to Maturity of Debt stood at 4.4 years.

The best thing is 100% of the assets remain unencumbered.

Mapletree Commercial Trust Debt Maturity 2H FY2021

Current Dividend Yield

Based on the full year dividend payout of 9.49 cents and current share price of S$2.19, this translate to a current dividend yield of 4.33%.

Mapletree Commercial Trust Share Price 30 Apr 2021

Summary

I am glad that Tenant sales have recovered to more than 86% of 2019 pre-COVID levels. At current dividend yield of 4.33%, it is still attractive to buy into Mapletree Commercial Trust.

Vivo Monthly Shopper Traffic and Tenant Sales Mar 2021

The retail sector has yet to reach full recovery as this is highly dependent on the reopening of
Singapore’s borders. However, the retail sector is expected to bottom out in late 2021 and potentially recover gradually from 2022. Competition from e-commerce and tight labour supply will continue to pose challenges.