Mapletree Commercial Trust

Mapletree Commercial Trust: 4QFY14 results in line. DPU was 12.4% higher y/y at 1.953¢, while distributable income rose 17.1% to $40.7m. Revenue climbed 12.9% to $68.6m, while NPI rose 12.2% to $50.9m, on the back of positive contributions from VivoCity, PSA Building and full quarter contribution from Mapletree Anson following its acquisition in February last year. Mapletree Anson delivered a DPU accretion of 1.3%, but its occupancy rate fell 6.2ppt to 93.8ppt q/q as a single tenant moved out upon lease expiry. Management guides the space has been committed. Consequently, portfolio occupancy to be shaved off by 0.5ppt to 98.2%. Given strong operating performances at VivoCity and PSA Building, MCT’s portfolio was revalued upwards by 5.3% to $4.03b. As a result, aggregate leverage inched lower by 2.2% to 38.7%. At VivoCity, shopper traffic rose 1.4% and tenant sales climbed 5.6% in the year. Management added that except luxury watches, all trade categories have shown growth. Leases which expired in the year were renewed at an average fixed rent increase of 37.7%. NAV at end Mar was $1.16, translating to 1.1x P/B, while FY14 yield is 5.9%. Latest broker ratings Deutsche: Maintains Buy with increased TP of $1.53 from $1.47 HSBC: Maintains O/W with increased TP of $1.36 from TP $1.30