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MCT's 1QFY2023 NPI lifts by 10.1% to $106.7 mil

Felicia Tan
Felicia Tan7/29/2022 09:24 PM GMT+08  • 3 min read
MCT's 1QFY2023 NPI lifts by 10.1% to $106.7 mil
VivoCity, a dominant mall on the Southern Waterfront, pre-Omicron. Photo: The Edge Singapore
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The manager of Mapletree Commercial Trust (MCT) has posted gross revenue of $135.0 million for the 1QFY2022/2023, 8.8% higher than gross revenue of $124.1 million in the same period the year before.

During the quarter, property expenses increased by 4.0% y-o-y to $28.3 million.

Net property income (NPI) increased by 10.1% y-o-y to $106.7 million with an NPI margin of 79.0%

The growth in earnings came in tandem with the relaxing of Covid-19 measures and the lower rental rebates, as well as higher contribution from VivoCity and Mapletree Business City (MBC).

VivoCity saw tenant sales rebound by 53.3% y-o-y, surpassing pre-Covid-19 levels and outpacing the recovery of shopper traffic.

As a result of lower rental rebates, higher rental income, turnover and step-up rents, as well as higher carpark income, VivoCity achieved 34.4% and 45.0% y-o-y growth in gross revenue and NPI respectively for the 1QFY2022/2023.

See also: CDL reports high occupancies for Singapore office, recovery in retail and hotel portfolios

The mall had a committed occupancy of 98.5% as at June 30.

In the 1QFY2022/2023, gross revenue and NPI from the office and business park assets totalled $79.8 million and $63.8 million respectively.

MBC, in particular, contributed $55.7 million of gross revenue and $45.2 million of NPI, which grew by 5.5% and 5.8% y-o-y.

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mTower posted lower year-on-year gross revenue and NPI in 1QFY2022/2023 largely due to a one-off compensation from a lease pre-termination in 1QFY2021/2022.

The committed occupancies for MBC and mTower were 98.2% and 86.8% respectively, while both Bank of America HarbourFront and Mapletree Anson achieved full commitment.

“This quarter’s results are a testament to our forward-looking and proactive management efforts, and our relentless focus to position our assets well to capitalise on shifts in the environment,” says Sharon Lim, CEO of the manager.

“We are especially pleased with the strong performance by our crown asset, VivoCity, which recorded 34.4% and 45.0% y-o-y growth in gross revenue and NPI respectively. With the significant easing of Covid-19 measures since April, VivoCity’s 1QFY2022/2023 tenant sales rebounded further to $248.4 million, well surpassing pre-Covid levels,” she adds, saying that the manager remains “confident” that VivoCity will “continue its upward trajectory as social activities and international travel progressively return to normalcy.”

On the proposed merger with Mapletree North Asia Commercial Trust (MNACT), Lim says the manager needs to “forge ahead and expand overseas to put MCT on the best path forward”.

“Our biggest responsibility will be to execute the ‘4R’ asset and capital management strategy, and to harness the best of both teams to capitalise on market recovery. Our commitment remains unchanged – to drive long-term growth and sustainable return,” she continues.

“With a diversified and high-quality portfolio across key gateway markets of Asia, of which best-in-class assets constitute approximately 67% of the merged portfolio, we believe we can deliver,” she adds.

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As at June 30, MCT’s committed portfolio occupancy stood at 97.2%.

MCT’s aggregate leverage stood at 33.8% as at June 30.

The actual quantum, payment date and further details of the clean-up distribution to MCT unitholders in respect of the period from April 1 to July 20, which is the day immediately before the effective date of July 21, will be announced in due course.

Units in MCT closed 2 cents higher or 1.06% up at $1.90 on July 29.

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