MAPLETREE COMMERCIAL TRUST (SGX:N2IU)
Mapletree Commercial Trust - ESG ~ Enhancing Best-in-class Assets
Leveraging assets for more
- Mapletree Commercial Trust (SGX:N2IU) is a diversified S-REIT owning two best-in-class assets, the Mapletree Business City (MBC) and VivoCity, which together contribute 79% of its NLA and 80% of our FY21E NPI.
- Mapletree Commercial Trust's AUM has risen on the back of three acquisitions post-IPO, while the REIT’s earnings profile has improved with its higher technology sector tenancies.
- Value-accretive AEIs at VivoCity, have continued to strengthen the mall’s relevance in Singapore’s retail landscape, and place it at the centre stage of management’s social and environmentally-led initiatives.
On a steady greening journey
- Two of three properties in Mapletree Commercial Trust's IPO portfolio (Bank of America Merrill Lynch HarbourFront, ARC) were already BCA Green Mark Gold certified, with VivoCity achieving its certification in Mar 2013. The environmentally-sustainable features of Mapletree Anson, one of the first properties in Singapore that was Platinum certified, were factored into an evaluation of its maiden acquisition in FY13. Including Mapletree Business City, Mapletree Commercial Trust now owns three Platinum-certified assets, and aims to at least maintain the respective certifications for all its properties.
VivoCity - more than a green space
- Mapletree Commercial Trust owns VivoCity, Singapore’s largest destination mall at 1.1m sf of NLA, which saw shopper traffic of 51.5m in FY20 mainly due to its location above the interchange station of the Northeast and Circle MRT lines. Proactive AEIs have delivered positive rental reversions and a 0.5% compression in cap rates to 4.625% as of end Mar 2020.
- Management has continued to leverage the mall’s strong attributes through collaborations with non-profit organisations, to raise the visibility and impact of philanthropic, social and environmental causes since its opening in 2006.
Mapletree Business City contribution improves earnings profile
- The acquisitions of Mapletree Business City Phase 1 and 2 have increased Mapletree Commercial Trust’s exposure to the more stable business park segment, and its gross rental income contribution from the burgeoning technology sector from 5.1% to 18.5%. The asset is well-placed, with demand supported by CBD decentralisation and tight supply at the city-fringe. It has strengthened Mapletree Commercial Trust’s control within the Alexandra precinct and dovetails with long-term development plans for Singapore’s Greater Southern Waterfront.
- See Mapletree Commercial Trust Share Price; Mapletree Commercial Trust Target Price; Mapletree Commercial Trust Analyst Reports; Mapletree Commercial Trust Dividend History; Mapletree Commercial Trust Announcements; Mapletree Commercial Trust Latest News.
Chua Su Tye
Maybank Kim Eng Research
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https://www.maybank-ke.com.sg/
2020-07-16
SGX Stock
Analyst Report
2.150
SAME
2.150
