Tuesday, April 22, 2014
MGCCT: 4QFY14 results above IPO estimates, with distributable income of $42.6m (+16.1%) and DPU of 1.587¢ (+15.9%), mainly due to robust rental uplift and higher portfolio achieved from both Festival Walk and Gateway Plaza. Gross revenue of $64.9m and NPI of $52m came above estimates by 7.5% and 8.7%. Portfolio occupancy improved 0.6ppts to 98.5% with weighted average lease expiry of 2.5 years (by rental income). Aggregate leverage ratio lowered 2.5ppts to 38%, with weighted average interest of 2% and debt duration of 3 years. At $0.88, MGCCT trades at an attractive 0.83x P/B and 7.7% forward yield, compared to chinese peers' (CapitaRetail China Trust and Fortune REIT) average of 0.8x P/B and 6.7% yield.