Mapletree Commercial Trust fiscal 4Q net property income up as VivoCity contribution rises

Signage at Mapletree Commercial Trust’s VivoCity mallSignage at Mapletree Commercial Trust’s VivoCity mall

Mapletree Commercial Trust reported Tuesday its fiscal fourth quarter net property income rose 3.9 percent on-year to S$87.56 million on higher contributions from the VivoCity mall, the PSA Building and MLHF.

Gross revenue for the quarter ended 31 March increased 3.7 percent on-year to S$112.90 million, the trust said in a filing to SGX after the market close.

The distribution per unit (DPU) was 2.31 Singapore cents for the quarter, up 1.8 percent from 2.27 Singapore cents in the year-ago quarter, the trust said.

VivoCity’s fourth quarter net property income rose 5.9 percent on-year, with committed occupancy at 99.9 percent as of end-March, the trust said.

Sharon Lim, CEO of Mapletree Commercial Trust Management, the trust’s manager, pointed to VivoCity’s asset enhancement initiative (AEI), which added a public library and expanded basement one for the gains.

“We also seized suitable opportunities to make space for new and larger format concept stores for some retailers, and rigorously refined our tenant mix,” she said in the statement.

She noted that the VivoMart hypermarket was replaced by grocer NTUC FairPrice, which has begun renovation works on the space. The change will allow the mall to recover around 24,000 square feet of space on level one and basement two, which has been fully committed by Uniqlo, and other new retailers and food and beverage outlets, she added.

“We expect the changes to further enhance VivoCity’s offerings and appeal as a major destination mall,” she said.

Net property income from the PSA Building, Mapletree Anson and the Bank of America Merrill Lynch HarbourFront (MLHF) building rose 7.9 percent on-year in the fourth quarter, mainly on higher rental income from renewed leases and as MLHF reached full occupancy, the trust said.

For the full fiscal year, Mapletree Commercial Trust reported net property income rose 2.6 percent on-year to S$347.63 million on gross revenue of S$443.89 million, up 2.4 percent on-year. The full-year DPU was 9.14 Singapore cents, up 1.1 percent on-year from 9.04 Singapore cents.

In its outlook, the trust said it expected its portfolio would remain resilient due to VivoCity’s strong position and consistent performance, as well as manageable lease expiries in the office and business park properties.

Mapletree Commercial Trust’s portfolio includes VivoCity, which is Singapore’s largest mall, Mapletree Business City I office and business park complex, 40-storey office PSA Building, which includes the three-storey retail center Alexandra Retail Centre, 19-storey office building Mapletree Anson and the six-storey office building MLHF.

 

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