Mapletree Commercial Trust year-end NPI jumped 15.9% to $338.85m

VivoCity and MBC I contributed higher revenue due to step-up rents.

Mapletree Commercial Trust’s (MCT) net property income (NPI) jumped 15.9% YoY from $292.31m to $338.85m in 2017. In Q4, NPI rose 1.2% YoY from $83.25m to $84.29m.

According to its financial statement, gross revenue in Q4 rose 1.3% higher to $108.9m, mainly due to the higher contribution from VivoCity, Mapletree Business City (MBC) I, and Bank of America Merrill Lynch HarbourFront (MLHF) offset by lower contribution from Mapletree Anson and PSA Building.

Moreover, revenue for VivoCity and MBC I was higher mainly due to effects of the step-up rents in existing leases. “Higher rental income for VivoCity was also contributed by the completed asset enhancement initiatives (AEI) on Level 1, partially offset by downtime due to the AEI to add a public library on Level 3 and to extend Basement 1,” the REIT said.

Revenue for MLHF rose thanks to higher occupancy and rental rates achieved. Meanwhile, lower occupancy drove revenue down for Mapletree Anson and PSA Building.

Property operating expenses were 1.3% higher at $24.6m mainly due to higher marketing and promotion expenses, staff costs, and property taxes offset by lower utilities expenses.

“MCT’s portfolio has remained relatively resilient amid market headwinds. We will continue our proactive asset management effort and focus on retaining quality tenants to maintain overall portfolio stability,” the REIT commented.