SINGAPORE (July 30): The manager of Mapletree North Asia Commercial Trust (MNACT), formerly known as Mapletree Greater China Commercial Trust, has reported a DPU of 1.881 cents for 1Q18 ended June, 1.6% higher compared to 1Q17 ended June.
Mapletree North Asia Commercial Trust Management says MNACT’s 1Q18 NPI of $76.8 million was 6.7% higher than 1Q17 NPI of $72.0 million mainly due to higher revenue growth from Festival Walk, Gateway Plaza and Sandhill Plaza as a result of higher rental rates, and new contribution from the Japan Properties from May 25, offset by the lower average rate of HKD.
Festival Walk continued to perform well, with full occupancy and an average rental reversion of 14% for retail leases that expired within 1Q18. However, due to the lower average rate of HKD during 1Q18 compared to 1Q17, gross revenue and NPI for 1Q18 declined by 1.5% and 1.1% respectively.
For Gateway Plaza, gross revenue and NPI for 1Q18 rose 4.6% and 6.2% respectively compared to the same quarter last year mainly due to an improved average rental rate and a higher average rate of RMB.
Sandhill Plaza’s gross revenue and NPI for 1Q18 grew 6.9% and 7.7% respectively as compared to 1Q17 mainly due to a higher average rental rate, an improved average occupancy rate and a higher average rate of RMB.
Distributable income for 1Q18 increased 9.3% to $56.7 million, compared to 1Q17, mainly due to higher NPI and the lower translated average cost of debt post re-financing.
The Japanese properties contributed gross revenue of $5.1 million and NPI of $3.9 million for the period from May 25 upon completion of acquisition to June 30.
The enlarged portfolio remains resilient with a high portfolio occupancy rate of 99.6% as well as healthy average rental reversions3 across all assets. As of June 30, 72% of the expired/expiring leases (by lettable area) in FY18 at the portfolio level have been renewed or re-let.
Units in MNACT closed $1.15 on Monday.