Mapletree Greater China Commercial Trust

Mapletree Greater China Commercial Trust (MGCCT): DPU beat estimates for third consecutive quarter Mapletree Greater China Commercial Trust (MGCCT) recorded 3QFY14 distributable income and DPU above IPO forecast by 16.6% to $40.6m and 1.518¢. This came on the back of better than expected rental uplifts for both Festival Walk in Hong Kong (+20%) and Gateway Plaza in Beijing (+78%), new committed leases, as well as lower operating expenses. Subsequently, gross revenue came above forecast by 9.9% to $65.7m while NPI beat by 13.2% to $53.8m. Overall portfolio occupancy slid marginally to 97.9% (-1.1ppts) with weighted average lease to expiry of 2.6 years. Aggregate leverage of 40.5% with debt maturity of 3.2 years at 2.0% cost of debt. Management is positive that the two properties will continue to benefit from the positive demand dynamics in China, given the resilient domestic demand in Hong Kong and rental reversions in Beijing office sector. Bloomberg consensus estimates 12-month TP of $0.99. At $0.795, MGCCT trades at 7.2% annualized yield (7 Mar 13 - 31 Dec 13) and 0.85x P/B.