MAPLETREE COMMERCIAL TRUST (SGX:N2IU)
Mapletree Commercial Trust - Recovery Appears On Track
- Mapletree Commercial Trust's 1QFY23 net property income (NPI) rose 10.1% y-o-y to S$106.7m
- Stable portfolio committed occupancy of 97.2%
- Low gearing of 33.8% but poised to increase following completion of merger
MCT's 1QFY23 NPI rose 10.1% y-o-y to S$106.7m
- Mapletree Commercial Trust (SGX:N2IU) provided a business update for 1QFY23 (1 Apr 2022 to 30 Jun 2022). Gross revenue and NPI rose 8.8% and 10.1% y-o-y to S$135.0m and S$106.7m, respectively, with the latter forming 25.5% of our FY23 forecast.
- Growth was driven largely by higher contribution from VivoCity and Mapletree Business City, with the former underpinned by lower rental rebates and organic recovery from the pandemic. This was partially offset by a 41% y-o-y dip in NPI at mTower due to lower occupancy and a one-off compensation from a lease pre-termination which was recorded in 1QFY22.
Stable portfolio committed occupancy of 97.2%
- Mapletree Commercial Trust’s portfolio committed occupancy was stable, inching up slightly by 0.2 percentage points (ppt) q-o-q to 97.2%, as the improvement at Mapletree Business City (+0.9 ppt q-o-q to 98.2%) was partially offset by declines recorded at VivoCity (-0.7 ppt q-o-q to 98.5%) and mTower (-1.2 ppt q-o-q to 86.8%). No rental reversion figures were provided for this 1QFY23 update.
- VivoCity’s tenant sales and shopper traffic jumped 53.3% and 50.9% y-o-y to S$248.4m and 9.1m in 1QFY23, respectively. Tenants’ sales in 1QFY23 had surpassed pre-COVID levels (using 1QFY20 as comparison) by ~19% due to the relaxation of community safe measurement measures in Singapore and the return of tourists, albeit not yet at full force.
Low gearing of 33.8% but set to increase following completion of merger
- Mapletree Commercial Trust’s gearing ratio increased marginally by 0.3 ppt q-o-q to 33.8%, as at 30 Jun 2022, with 78.6% of its total debt hedged. Its gearing ratio is poised to increase to closer to 40% on a pro-forma basis post-completion of its merger with Mapletree North Asia Commercial Trust (SGX:RW0U).
- Mapletree Commercial Trust’s weighted average all-in cost of debt increased 13 basis points (bps) to 2.53%. According to Mapletree Commercial Trust, every 50bps increase in the Singapore DPU forecasts but lower our fair value estimate for Mapletree Commercial Trust from S$1.95 to S$1.90, largely due to a higher risk-free rate assumption of 3.25% (previously 2.5%).
- See
OCBC Research Team
OCBC Investment Research
|
https://www.iocbc.com/
2022-08-01
SGX Stock
Analyst Report
1.90
DOWN
1.95
