Improving office and retail market could boost Mapletree Commercial Trust

It saw a continuous growth in DPU.

Improving office rents and retail sentiment in Singapore could unburden investors of the fear that Mapletree Commercial Trust may not be able to counter the impact of higher interest rates, DBS Equity Research said.

“As investors acknowledge this fact, MCT’s share price should outperform,” they commented.

Moreover, they noted MCT’s ability to deliver consistent growth in distribution per unit (DPU), highlighting the quality of its assets.

However, DBS Equity Research noted that a key risk could be a retail sales slowdown which could hit VivoCity’s ability to hike its rents. Another key risk is a slower-than expected pick-up in office/business park rents, DBS Equity Research noted.

In Q2, MCT’s NPI grew to $86.26m, up 2.2% YoY from $84.42m to $86.26m, an announcement revealed. Revenue also inched up 2.5% YoY to $109.92m.