Mapletree NAC Trust Is Impacted By The Festival Walk's Damage

Key Highlights:

  • Mapletree North Asia Commercial Trust (SGX: RW0U)'s 3Q19 DPU dropped 13.3%

  • The annualised yield and price to book ratio are 5.6% and 0.88 respectively

1. Dividends

Net property income had a sharp drop of 40% to $50.8m. The drop was mainly due to closure of Festival Walk as it was damaged by the protestors during the riot last year. The lower occupancy rate of Gateway Plaza also contributed to the poor performance.

The annualised yield is 5.6%. Although the REIT has been delivering growing DPUs over the years, it would very likely to record a lower DPUs this year due to the income impact of Festival Walk (contributed more than 60% of its net property income).

Source: reitscompass's REITs Insider ratings

2. Portfolio

Portfolio occupancy dropped slightly to 96.3%, with 21.6% of gross rental income is up for renewal next year. The portfolio leverage is currently at the healthy side of 37.1%. The interest cost is 2.46%, the good news is downside risk is hedged with 88% of the loans are on fixed rates.

It is currently trading at a price to book ratio of 0.88.

3. Growth Catalyst

The good news