Mapletree Commercial Trust Q2 DPU up 9.4%
Singapore
MAPLETREE Commercial Trust on Friday reported a 9.4 per cent increase in distribution per unit (DPU) to 1.97 Singapore cents for its second quarter ended Sept 30, 2014.
This came on the back of an 11 per cent increase in income available for distribution to S$41.4 million.
Gross revenue rose 6.3 per cent to S$70 million on positive contributions from VivoCity, PSA Building and Mapletree Anson, thanks to higher rental income achieved for new and replacement leases, as well as step-ups in existing leases. In tandem, net property income rose 8.8 per cent to S$52.1 million.
"While the market conditions have presented challenges for retailers and F&B operators in general over the past few quarters, VivoCity is still well-received by shoppers and well-supported by our tenants. We are thus planning a small asset enhancement at VivoCity to create about 15,000 sq ft of new retail space at basement 1 of the mall to bring in new brands to complement the current tenant mix," said Amy Ng, CEO of the Reit management.
The work is expected to start in Q3 and be completed by September 2015. It will cost about S$5.5 million.
The Reit noted that despite the challenging operating conditions in the retail sector, there was still strong demand by new or expanding retailers for prime space.
"The choice of store locations has become an even more important factor to such retailers, given the increasing number of brands and the growth of e-commerce in Singapore," it said.
As for offices, rentals should grow through the next few quarters, underpinned by low vacancy and steady demand, but the pace of rental growth may ease by H2 2015 as the impact of impending supply from mid-2016 through 2017 intensifies the competition for tenants.
Unitholders can expect to receive their distribution on Dec 4, 2014.
The Reit's units closed a cent higher at S$1.46 on Friday.
