Mapletree Commercial Trust’s net profit up 13.6% on back of robust rental growth

Its raked in $41m last quarter.

Mapletree Commercial Trust reported that its net profit climbed 13.6% year-on-year to $41m, lifted by higher revenue and margins.

MCT’s distribution per unit for the third quarter grew 11.5% to 2.1 cents. Its revenue increased 6.5% to $72.9m.

According to CIMB, 84% of 84% of Vivocity’s portfolio leases expiring in FY14 have been committed, with
renewal rents 15% and 13% higher at retail and office segments, respectively, compared to their preceding leases.

“With both tenant sales and shoppers’ traffic at Vivocity flat yoy, we believe that rental growth could moderate in the future, coming largely from tenant remixing and AEIs set to contribute from 2HFY3/16 onwards. We increase our FY15-17 DPUs by 0.7-2.3% and DDM-based target price by 2.7% to account for the higher NPI margins,” stated CIMB.