MGCCT

MGCCT: For the 7 months period from listing date (7 Mar) to 30 Sep, MGCCT recorded its maiden DPU of 3.183¢ and distributable income of $85m, both exceeded forecast by 10.4% and 10.5% respectively. This translates to an annualized DPU of 5.59¢, implying a yield of 6.1% based on the last closing price of $0.92. This is compared to the 5.4% forecast during its IPO. Gross revenue of $136.9m and NPI of $110.3m beat forecast by 6.1% and 8.6% on the back of a robust rental reversion in Festival Walk (+22%) and Gateway Plaza (+81%). Overall portfolio occupancy of 99.0% with a weighted average lease expiry of 2.6 years. On a quarter basis, gearing improved 1.4ppts to 40.1% q/q with an interest cost of 2.0% and debt maturity of 3.5 years. NAV per unit of $0.98 is 6.5% above the last close of $0.92. Going forward, 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 taking place in Beijing office sector.