Mapletree Commercial Trust (SGX:N2IU) Continues To Deliver Strong Results



Mapletree Commercial Trust (SGX: N2IU) has recently announced its first half 2020 financial results. It is currently trading at 4.4% yield based on the last traded share price of $1.90.


Key Highlights:


  • Distribution per unit (DPU) and Dividend Yield (4.4%)

  • Price to book ratio (1.1)

  • Gearing (33.8%)

  • Interest coverage ratio (4.0x)

  • Portfolio occupancy rate (96.1%)

  • Growth catalyst


Background of Mapletree Commercial Trust


Mapletree Commercial Trust manages six office and retail properties in Singapore, which includes

  1. VivoCity

  2. Mapletree Business City I

  3. Mapletree Anson

  4. Bank of America Merrill Lynch HarbourFront

  5. PSA Building

  6. MBC II

The REIT is sponsored by Mapletree Investments, a property developer based in Singapore.


1. Distribution per unit and dividend yield


Based on its 1H financial results, Mapletree Commercial Trust's net property income dropped 2.6% to $171m. This was mainly due to the rental rebates given to its retail tenants during this pandemic period. The rental rebate was partially offset by contribution from MBC II.


Based on its latest price, the REIT is currently trading at about 4.4% dividend yield. Historically, the REIT has been paying very consistent DPU, with steady growth over the years. However, its current 4.4% yield is slightly lower as compared to its average yield of 5.8% over the past 8 years.