Continued recovery

■ 2H/FY22 DPU of 5.14/9.53 Scts within expectations, at 57.8%/100.3% of our
FY22 forecast.
■ Achieved positive rental reversions amid higher portfolio occupancy.
■ Reiterate Add, with an unchanged TP of S$2.18.

2H and FY3/22 results highlights

MCT reported 2HFY3/22 gross revenue of S$255.8m and NPI of S$198.8m, up 4.9% and
4.7% hoh respectively, thanks to higher revenue across all properties, except Mapletree
Anson, and lower rental rebates vs. a year ago. Inclusive of S$15.7m of retained income
released, income available for distribution was S$170.5m (+16.4% hoh), translating to DPU
of 5.14 Scts. FY22 DPU of 9.53 Scts (+0.4% yoy) was in line at 100.3% of our forecast.
The trust revalued its portfolio up 0.4% (vs. Sep 2021 level) to S$8.8bn. Portfolio
occupancy improved qoq to end FY22 at 94.3%, with committed occupancy at a higher
97%. Gearing as at end-FY22 was 33.5%, with all-in cost of debt remaining stable at 2.4%.

Shopper traffic and tenant sales at VivoCity improve yoy

VivoCity’s revenue/NPI grew 8.6%/8.2% in FY22 to S$183.9m/S$135.9m, driven by higher
occupancy of 98.6%, as well as lower rental rebates, equivalent to 1.4 months of fixed
rents (vs. 4.4 months in FY21). FY22 shopper traffic grew 4.5% while tenant sales
improved a higher 15.6%, with tenant sales in 4QFY22 recovered to pre-Covid levels. MCT
achieved a +2.1% rental reversion for retail lease renewals in FY22. Looking ahead, we
expect VivoCity to benefit further from the relaxation of Covid-19 measures from 29 Mar.
Some 9.1%/10.5% of MCT’s portfolio income from retail leases are due to expire in
FY23F/FY24F.

Occupancy of office/business parks properties increased qoq

Office/business parks revenue and NPI improved 1.9% and 0.6% respectively in FY22,
thanks to higher contributions from mTower and MLHF. MCT continued to make progress
in backfilling mTower, with higher occupancy of 84.7% (committed occupancy: 88%) at
end-FY22. Mapletree Anson’s take up rate also increased to 95% as at end-FY22
(committed occupancy: 100%). MCT achieved an average rental reversion of +1.7% for its
office/business parks segment in FY22. Some 10.3%/9.7% of MCT’s portfolio income from
office/business parks leases are due to expire in FY23F/FY24F.

Reiterate Add rating

We tweak our FY23-24F DPU forecasts up 0.31-0.52% post results. MCT’s proposed
merger with MAGIC (MAGIC SP, Hold, TP S$1.13) is ongoing, with the EGM on the issue
targeted to be held by end-May 2022. The merger could leapfrog MCT to be among the
top 10 largest REITs in Asia and allow the enlarged entity to pursue accelerated growth
opportunities. MCT is currently trading at c.5.2% FY23F yield. We maintain our Add rating
with an unchanged DDM-based TP of S$2.18. Potential re-rating catalysts include
accretive acquisitions. Downside risks include weaker rental reversion.