Mapletree Greater China Commercial Trust with a Stable Handle

MGCC listed on SGX Mainboard on 7 Mar 2013

http://www.mapletreegreaterchinacommercialtrust.com/Investor-Relations/Publications/Annual-Reports.aspx

Financial Data

NAV: $1.05
Mkt Value (18 Jul 2014) : 89c
Div Yields: 7%
Div Payment Period:    May, Nov

Opinion

Having received its annual report, i'm glad that i have invested in this REIT around the price of 86-90c. This REIT reported a 7.4% increase in actual gross revenue as compared to an estimated forecast. Its actual DPU is higher by 13.1% as compared to its forecast. With its current price at 89c (Dtd: 18 Jul 2014) and its NAV @ 105c, this counter is currently undervalued. However, one of the risk that need to be highlighted is its Gearing Ratio. Its current ratio is 38% (Refer to annual 13/14, pg 5) which is relatively higher as compared to other REITs. Going forward, I don't expect to see much changes.

One of the future developments in MGCC, is for the sponsor to inject new buildings into this portfolio. Given the sponsor has won a government land tender in HK that is earmarked as HK new CBD, the site will be developed into Grade-A office building.




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