Mapletree Commercial Trust reported Wednesday its net property income for the first nine months of its fiscal year rose 5.6 percent on-year to S$291.31 million, mainly on lower rental rebates and higher compensation from lease pre-terminations.
Gross revenue for the April-to-December period increased 7.3 percent on-year to around S$374.0 million, the trust said in a filing to SGX.
In the fiscal third quarter, VivoCity’s tenant sales rose 3.7 percent on-year, reaching nearly 90 percent of pre-Covid levels, largely on strong festive spending and some relaxation of Covid-related restrictions from November, the trust said.
For the nine-month period, VivoCity posted a 17.8 percent on-year increase in tenant sales, even as shopper traffic grew only 10.2 percent on-year.
The property posted net property income of S$99.8 million for the nine-month period, up from S$88.4 million in the year-earlier period. Gross revenue at VivoCity was S$135 million for the nine-month period, up from S$117.3 million in the year-ago period, the trust said.
The office and business park assets posted nine-month gross revenue rose 3.3 percent on-year and net property income rose 2.1 percent on-year on higher on-year contribution from the MBC, mTower and Bank of America Merrill Lynch HarbourFront (MLHF) properties.
The trust noted that healthy demand and a tight supply situation have led to an overall increase in office rents in Singapore, with CBRE forecasting further rental growth.
For business parks, the trust noted firms adopting a hybrid working model and downsizing efforts remained the common drivers for most renewals and relocation activities.
“The outlook for business park in the mid-term remains largely favourable, although prolonged work-from-home measures and hybrid working arrangements could impact near-term leasing momentum. The rental prospects for the City Fringe market are more optimistic, given limited availability and sustained demand from the pharmaceutical and tech sectors,” Mapletree Commercial Trust said.
Sharon Lim, CEO of the REIT’s manager, noted that despite the continued impact from the Covid-19 pandemic in Singapore, the portfolio has sustained its performance.
“Notwithstanding the emergence of the Omicron variant and fluidity of the Covid-19 situation, we remain hopeful of an imminent recovery given the country’s high vaccination rate and relaxation of work-from-home requirements since the start of 2022,” she said in the statement. “We will continue to work towards further strengthening the portfolio’s performance, and seize opportunities to position MCT for the eventual upturn.”
Mapletree Commercial Trust’s portfolio has five assets: VivoCity, MBC, mTower, Mapletree Anson and MLHF.