MAPLETREE Greater China Commercial Trust (MGCCT) achieved an 11.6 per cent growth in distribution per unit (DPU) for the third quarter ended Dec 31, 2015, to 1.854 cents, thanks to an enlarged portfolio, higher rents and favourable exchange rates.
This translates to an annualised distribution yield of 8 per cent based on the closing unit price on Dec 31, 2015.
Gross revenue during the quarter jumped 19.8 per cent from a year ago to S$88.2 million while net property income leapt 22.3 per cent to S$72.5 million, bolstered by the acquisition of Sandhill Plaza, strong rental uplifts from both Festival Walk and Gateway Plaza, and the appreciation of the Hong Kong dollar and renminbi against the Singapore dollar.
As at Dec 31, 2015, MGCCT achieved a high portfolio occupancy of 98.7 per cent and has renewed or replaced 92 per cent of the portfolio leases due for expiry in fiscal 2016 ending March 31.
Rental demand for the MGCCT Group's three properties is expected to remain resilient, said Cindy Chow, CEO of the Reit manager.
Interest cost on 93 per cent of MGCCT's debt for fiscal 2016 ending March 31 has been fixed as at end-2015, thus reducing exposure to interest rate volatility for the rest of the financial year.
"In addition, MGCCT's exposure to Hong Kong dollar and renminbi volatility is mitigated, with about 91 per cent of the expected distributable income for fiscal 2016 hedged into Singapore dollar," Ms Chow said. "To further mitigate foreign exchange volatility, we will hedge distributable income for up to four quarters forward, on a rolling basis."