Mapletree Greater China Commercial Trust (MGCCT) reported a solid set of 3QFY16 results which came in within our expectations. Gross revenue jumped 19.8% YoY to S$88.2m, aided by additional contribution from Sandhill Plaza, which was acquired on 17 Jun 2015, rental uplifts from its other malls and positive FX movements.

DPU grew 11.6% to 1.854 S cents. For 9MFY16, MGCCT’s gross revenue accelerated 21.4% to S$248.8m, while DPU of 5.342 S cents represented a growth of 10.9%. The former and latter constituted 76.2% and 74.3% of our FY16 forecasts, respectively.

Management achieved strong positive rental reversions of 42% and 29% at Festival Walk’s retail and Gateway Plaza’s office segments, respectively, as at 31 Dec 2015. Overall portfolio occupancy stood at 98.7%, a slight increase of 0.3 ppt on a QoQ basis. We will provide more updates after the analyst conference call. Maintain BUY but we will be reviewing our S$1.10 fair value estimate on MGCCT.

Source: OCBC Research - 1 Feb 2016