MGCCT's Q2 DPU up 10.4% on rental boost

Singapore

MAPLETREE Greater China Commercial Trust has posted an 11.9 per cent increase in distributable income for its fiscal second quarter on the back of higher rentals.

The real estate investment trust's income available for distribution to unitholders rose to S$43.5 million for the three months ended Sept 30. The Reit will distribute 1.606 Singapore cents per unit, up 10.4 per cent from its year-ago distribution.

For the half-year ended September, available distribution per unit was up 11.1 per cent year-on-year at 3.162 cents. Net property income rose by 9 per cent to S$55.1 million, taking the fiscal first-half net property income to S$107.7 million, a 9.4 per cent gain.

Mapletree Greater China Commercial's current portfolio comprises the Festival Walk mall and office building in Hong Kong and the Gateway Plaza office building in Beijing.

Festival Walk was fully occupied during the period, with a 3.6 per cent improvement in tenant sales despite a 1.7 per cent decline in shopper traffic in the quarter. About 92 per cent of leases expiring in the mall had been renewed or re-let with a 21 per cent improvement in rents as at Sept 30. Gateway's occupancy was 98.6 per cent as at Sept 30, with 86 per cent of the leases expiring in fiscal 2014 and 2015 committed with a 32 per cent improvement in rents.

Looking ahead, the Reit said that the Hong Kong retail sector remained "stable" despite the social and political uncertainties. It also expects the Beijing office market to remain steady.

Shares of the Reit closed at 95 cents on Friday, up by 0.5 per cent or half a cent, before the results were announced.