MCT – BT

MCT Q3 DPU beats forecast by 15.5%

MAPLETREE Commercial Trust (MCT) posted a distribution per unit (DPU) of 1.428 cents for the third quarter ended Dec 31, 2011, beating its forecast of 1.237 cents by 15.5 per cent.

This translates to an annualised yield of 6.7 per cent, based on MCT’s closing price of 85 cents on the last trading day of 2011.

Gross revenue of $49.7 million for Q3 exceeded forecast by 4.4 per cent and was 10.7 per cent higher than the unaudited pro-forma gross revenue for the same period the previous year following stronger revenue streams from VivoCity, new contributions from Alexandra Retail Centre (ARC) as well as tenants taking up additional space in PSA Building.

Consequently, net property income (NPI) rose 9.3 per cent to $33.8 million from $30.9 million in the corresponding period a year back (based on pro-forma numbers).

Cumulatively, from the commercial real estate investment trust’s (Reit) April listing date till Dec 31, 2011, a gross revenue of $127.4 million was recorded, up 4.9 per cent year-on-year due to stronger revenue flows from VivoCity and positive rent renewals.

Correspondingly, NPI also climbed 5.5 per cent to $88.2 million year-to-date and distributable income rose to $69.2 million, up 25.2 per cent on the back of higher net income and non-tax deductible items that were not factored in the pro-forma numbers.

So far, the DPU for the period spanning April 27, 2011 to Dec 31, 2011, stands at 3.717 cents, beating the IPO forecast of 3.334 cents by 11.5 per cent.

MCT’s total portfolio was also recently valued at $2.9 billion as at Nov 30, 2011, by DTZ Debenham Tie Leung (SEA) Pte Ltd, which triggered a revaluation gain of $62.4 million in the Reit’s books.

Gearing also improved by declining to 37.7 per cent from 38.5 per cent previously.

Going forward, management expects MCT’s portfolio which is located along the ‘Southern corridor’ of Singapore to benefit from the opening of MRT stations on the Circle Line extension, while the mix of office and retail together with a diversified tenant base would reduce risk and offer sustainability of earnings.

MCT ended trading unchanged at 86.5 cents yesterday.