Mapletree Commercial Trust (SGX:N2IU) (MCT) reported on Thursday that Net Property Income (NPI) for 1H FY20/21 was S$171.5 million, down 2.6% year-on-year. Gross Revenue was also down 2.5% to S$218.7 million. This decline was mostly due to rental rebates granted to eligible retail tenants affected by Covid-19, but offset by contribution from Mapletree Business City (MBC) II which was acquired on 1 November 2019.
Distribution per unit (DPU) for 1H FY20/21 was 4.17 cents, a decline of 9.9% year-on-year.
The rebound in tenant sales has outpaced shopper traffic since Phase Two lifting of the circuit breaker and resumption of shopper activities. As at 30 September, MCT’s committed occupancy remained high at 97.7%.
“We believe that there is room for further improvement in tenant sales and shopper traffic once restrictions such as border closures, work-from-home directives and safe distancing measures are lifted”Ms Sharon Lim, CEO of the Manager
In 2Q FY20/21, VivoCity recorded S$183.3 million of tenant sales, approximately 78% of sales recorded in the previous FY. This is a significant improvement from 1Q FY20/21 where only S$76.5 million sales were recorded (or 36.6% of the same period last year).
Amid the COVID-19 interruptions, improvement works were carried out to replace the entire mall’s flooring, as well as reconfiguration works for Best Denki’s space on level 2, and the promenade-facing F&B cluster on Level 1. “Both initiatives will deliver positive financial benefits and further enhance VivoCity’s appeal as a destination mall, to position ourselves for the eventual upturn”, added Ms Lim.
The first-time contribution from MBC II and the higher contribution from Mapletree Anson in 1H FY20/21 helped drive gross revenue and NPI for the office/business park assets higher by 33.4% and 33.8% respectively. Committed occupancies for PSA building and MBC I were at 87.9% and 98.2% as at 30 September, while full occupancy was reported from MBC II, Mapletree Anson and Bank of America Merrill Lynch HarbourFront (MLHF).
MCT continues to adopt a proactive and prudent capital management approach. During 1H FY20/21, S$160 million of Fixed Rate Notes due in August 2020 were redeemed and S$369.3 million of term loans were refinanced ahead of expiry. This ensures that the debt maturity profile remained well-distributed with no more than 21% of debt due for refinancing in any financial year. MCT has more than S$600 million of cash and undrawn committed facilities available to meet any working capital and financial obligations. All bank debts due up till FY20/21 have also been refinanced.
As at 30 September, MCT’s aggregate leverage was 33.8%, with a average term to maturity of 4.5 years and weighted average all-in cost of debt at 2.57% per annum.
In a separate bourse filing, MCT also announced the decline of its portfolio valuations to S$8.7 biillion as at 30 September, down from its previous valuation of S$8.9 billion as at 31 March 2020. As such, Net Asset Value (NAV) per unit declined from S$1.75 to S$1.71.
Mapletree Commercial Trust has a diversified portfolio of income-producing real estate used primarily for office and/or retail purposes, whether wholly or partially, in Singapore, as well as real estate related assets. MCT’s portfolio comprises VivoCity, MBC, PSA Building, Mapletree Anson and MLHF. These five assets have a total NLA of 5.0 million square feet with a total value of S$8.7 billion.