Wednesday, July 31, 2013
MGCCT: Announced maiden set of results since listing, distributable income of $46.1m and DPU of 1.73¢ are both 8.3% above its IPO forecast of $42.6m and 1.60¢ respectively. NPI of $59.7m was 7.4% above IPO forecast and gross revenue was $73.8m (+3.4%). This was due to strong rental reversions achieved from Festival Walk (+21%) and Gateway Plaza (+86%). Overall occupancy of 98.3% contributed by robust tenancy of 99.1% at Festival Walk and Gateway Plaza at a stable 97.8%. Average weighted lease to expiry of 2.7 years. Gearing of 41.5% with average debt maturity of 4 years and cost of debt of 2%. The two properties will continue to benefit from the positive demand dynamics in Greater China, given the resilient domestic demand in Hong Kong and organic rental reversions. MGCCT targets organic growth through asset enhancements in the form of kiosks, to provide additional rental income from the space, as well as organizing marketing and promotion activities to increase its footfall. MGCCT currently trades at an implied FY13 annualized yield of 5.8%.