SINGAPORE (July 27): The manager of Mapletree Commercial Trust (MCT) has announced a distribution per unit (DPU) for 1Q17/18, 9.9% higher than the 2.03 cents it declared in the same period a year ago.
Unitholders can expect to receive the distribution on Aug 30.
Gross revenue was up 46.9% to $107.8 million from $73.4 million a year ago.
This was mainly driven by higher rental income from new and renewed leases achieved together with the completed asset enhancement initiatives (AEI) on Basement 2, Level 1 and Level 3 of Vivocity, as well as the effects of rental step-ups in existing leases.
According to manager Mapletree Commercial Trust Management, VivoCity continued to deliver “outstanding results” with shopper traffic and tenant sales up 7.2% and 3.8% respectively against that of 1Q16/17, and a committed occupancy which remained at 99.6% as at end-June.
The manager adds that when AEI on Level 1 and Level 2 is completed and stabilised with an estimated capital expenditure of about $3 million, it is expected to contribute 25% in returns.
Property operating expenses were 38% higher at $23.6 million compared to 1Q16/17, largely due to property operating expenses of Mapletree Business City I (MBC I) of $5.4 million, higher property maintenance expenses, property taxes and property management fees incurred by the existing properties.
Accordingly, net property income (NPI) for the quarter grew 49.6% on-year to $84.2 million from $56.3 million in the previous year, which was offset by higher finance expenses and higher management fees.
Income available for distribution grew 48.2% to $64.4 million.
Overall, MCT’s balance sheet had an aggregate leverage ratio at 36.4% as at June 30, and a committed occupancy of the overall portfolio at 98.6%.
“As a result of our proactive capital management, there is no refinancing need in FY17/18. Overall, MCT has maintained a well-distributed debt maturity profile with no more than 20% of debt due for refinancing in any financial year,” notes its management in a press release on Thursday.
Units of MCT closed 1 cent higher at $1.63 on Thursday.