• 1QFY19 DPU 1.881 Scts was in line, accounting for 24.6% of our FY3/19 forecast.
• There were positive rental reversions across all properties in the portfolio.
• Interest rate exposure is 90% hedged.
• In our view, there is more debt headroom for new acquisitions, with a gearing of 38.8%.
• We maintain our ADD call with an unchanged target price of S$1.30.

1QFY3/19 Results Summary

Mapletree North Asia Commercial Trust reported 1QFY3/19 DPU of 1.88 Scts (advanced distribution of 0.764 Scts paid on 25 May 18), +1.6% y-o-y, supported by a 6.2%/6.7% rise in revenue and NPI. 

There was higher income from Festival Walk (FW), Gateway Plaza (GW) and Sandhill Plaza (SP) and maiden contribution from the Japan properties, partly offset by a lower average HK$ rate. 

Portfolio occupancy remained high at 99.6%. 72% of FY3/19 portfolio expiries have been renewed/re-let. 1Q DPU is in line at 24.6% of our FY19 forecast.

Source: CGS-CIMB Research - 31 Jul 2018