Mapletree Commercial Trust reports fiscal 1Q net property income rose 3 percent

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

Mapletree Commercial Trust reported Thursday its fiscal first quarter net property income rose 2.8 percent on-year to S$88.35 million on higher contributions from VivoCity, Mapletree Business City I (MBCI), PSA Building and Bank of America Merrill Lynch HarbourFront (MLHF).

Gross revenue for the quarter ended 30 June rose 3.3 percent on-year to S$112.13 million, the owner of the VivoCity mall said in a filing to SGX.

The distribution per unit (DPU) was 2.31 Singapore cents for the quarter, up 3.6 percent from 2.23 Singapore cents in the year-ago quarter, the filing said.

“We are proud to report good progress on the changeover of anchor tenant space in VivoCity. NTUC FairPrice successfully soft-launched its
largest and most advanced store in Singapore on 16 July,” Sharon Lim, CEO of the trust’s manager, said in the statement.

“The addition of their refreshed concept will help to widen our retail offerings and complete the mall’s trade mix. On top of that, we also converted the remaining anchor space to accommodate new/expanding tenants, including several popular F&B eateries, thus strengthening
the mall’s appeal,” she said, noting most of those tenant started operations since May.

Despite downtime in shopper traffic and tenant sales amid the changeover from the departing Giant hypermarket to the NTUC Fairprice hypermarket, VivoCity’s net property income increased 4.2 percent and its gross revenue rose 5.2 percent, Lim said.

That was on higher rental income from new and renewed leases and from step-up rents in existing leases, the trust said.

“Momentum in shopper traffic and tenant sales is expected to pick up after the changeover is complete and we remain confident about VivoCity’s outlook and future performance,” she said.

Shopper traffic at VivoCity in the fiscal first quarter was 2.8 percent lower on-year, while tenant sales declined 4.0 percent over the same period, the trust said.

MBC I posted higher rental income from new leases and step-up rents in existing leases, while the PSA Building and MLHF saw higher rental income, the filing said.

However, revenue from Mapletree Anson was S$500,000 lower on-year at S$8.16 million due to year-earlier compensation sums, partially offset by higher rental income from higher occupancy and step-up rents in existing leases, the trust said.

Occupancy at the business park and office assets remained high, from 93.8 percent at the PSA Building to 100 percent at MLHF, the trust said, noting committed occupancy for the overall portfolio was at 98.9 percent. VivoCity’s committed occupancy was at 99.8 percent at end-June, up from 94.2 percent in the year-ago period, the filing said.

Mapletree Commercial Trust’s portfolio has five Singapore assets: VivoCity mall, MBC I, PSA Building, Mapletree Anson and MLHF.

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