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Mapletree Commercial Trust’s Distribution Per Unit (DPU) Falls To 0.91 Singapore Cents

Mapletree Commercial Trust’s Distribution Per Unit (DPU) Falls To 0.91 Singapore Cents

April 23, 2020 — Mapletree Commercial Trust’s fell from 2.31 Singapore cents in 4Q FY18/19 to 0.91 Singapore cents in 4Q FY19/20 due to the negative impact of COVID-19.

Its gross revenue and net property income, however, was up 12.8% and 12.6% respectively, driven mostly by the newly acquired Mapletree Business City (“MBC”) II.

Ms Sharon Lim, Chief Executive Officer of the Manager, said, “The outbreak of COVID-19 has brought forth a host of health, social and economic challenges globally. Furthermore, increasingly tighter health measures have been implemented to combat the outbreak.”

“These have inevitably impacted retail footfall and sales across the country and coupled with the rental assistance rolled out to support our retail tenants, have weighed down on VivoCity’s 4Q FY19/20 performance. Notwithstanding, the acquisition of MBC II during the year has added a timely diversification and resilience to MCT, driving continued growth in portfolio gross revenue and NPI.”

“As the COVID-19 situation is still evolving rapidly, there remains a significant degree of uncertainty over its duration and severity, and when normalcy can resume. While we remain well-capitalised with ample financial flexibility, we must continue to exercise prudence. We have thus elected to retain S$43.7 million of distribution by way of capital allowance claims and capital distribution retention in 4Q FY19/20 2 to better position ourselves for the challenges ahead.” Ms Lim elaborated, “In unprecedented times like these, we stand in solidarity with our stakeholders. This is why we will be waiving the April fixed rent for eligible retail tenants. We hope that this, as well as the S$29 million of assistance implemented for our retail tenants previously, can give them some helpful relief.”

Read more here..

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