Mapletree Commercial Trust - CGS-CIMB Research 2022-08-01: Recovery Underway

Mapletree Commercial Trust - Recovery Underway

  • Mapletree Commercial Trust (SGX:N2IU) reported 1QFY23 (1 Apr 2022 to 30 Jun 2022) gross revenue and NPI of S$135m and S$106.7m, +8.8% and +10.1% y-o-y, respectively, thanks to lower rental rebates and higher contribution from VivoCity and Mapletree Business City (MBC). Topline and NPI were in line with our projections, at 25%/25.5% of our FY23F forecasts.
  • Committed portfolio occupancy stood at 97.2% at end 1Q, up from 97% a quarter ago. Gearing ticked up slightly to 33.8% and all-in interest cost also inched up to 2.53% (from 2.4% in 4QFY22).
  • Mapletree Commercial Trust maintained a high fixed debt ratio of 78.6% as management has put priority on ensuring reasonable certainty over interest expenses in a bid to achieve an optimal balance between risks and costs.
  • VivoCity’s revenue and NPI grew 34.6%/44.9% y-o-y in 1Q to S$55.2m and S$42.9m, on lower rental rebates, higher rental income turnover and step-up rents and greater car park income, even as occupancy remained relatively stable at 98.5%. 1QFY23 shopper traffic grew 50.9% while tenant sales improved a higher 53.3% to exceed pre-COVID levels.
  • Office/business parks 1Q revenue and NPI declined 4% and 5.2% y-o-y to S$79.8m and S$63.8m respectively due to a high base from mTower with a one-off compensation from a lease pre-termination in the previous year. That said, committed occupancy levels at MBC improved q-o-q to 98.2%.
  • We keep our FY23-25F DPU estimates for Mapletree Commercial Trust unchanged post results. Our current forecast has not included the effect of Mapletree Commercial Trust’s merger with Mapletree North Asia Commercial Tru (SGX:RW0U) to become Mapletree Pan Asia Commercial Trust (SGX:N2IU), which became effective from 21 Jul 2022. The merger could leapfrog Mapletree Pan Asia Commercial Trust to be among the top 10 largest REITs in Asia and allow the enlarged entity to pursue accelerated growth opportunities.

Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @

LOCK Mun Yee CGS-CIMB Research | 2022-08-01
SGX Stock Analyst Report ADD MAINTAIN ADD 2.180 SAME 2.180

Previous report by CGS-CIMB:
2022-04-21 Mapletree Commercial Trust - Continued Recovery

Check out the most recent target prices at Mapletree Commercial Trust Target Prices. Listing of analyst research reports at Mapletree Commercial Trust Analyst Report.

Relevant links:
Mapletree Commercial Trust Share Price History,
Mapletree Commercial Trust Announcements,
Mapletree Commercial Trust Dividends & Corp Actions,
Mapletree Commercial Trust News Articles


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