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CHARTING
AHEAD
ANNUAL REPORT
2018/19
Mapletree Commercial Trust Management Ltd.
(as Manager of Mapletree Commercial Trust)
Co. Reg. No.:200708826C)
10 Pasir Panjang Road
#13-01 Mapletree Business City This report is printed on
Singapore 117438 environmentally friendly paper
TABLE OF KEY
CONTENTS HIGHLIGHTS
1 Key Highlights
2 Corporate Overview
3 Strategy
4 Financial Highlights DISTRIBUTABLE INCOME DISTRIBUTION PER UNIT
8
12
Letter to Unitholders
Year in Review
S$264.0 million 1.4% 9.14 cents 1.1%
14 Unit Price Performance
16 Trust Structure
17 Organisation Structure
18 Property Overview
34 Operations Review
38 Financial Review & Capital Management MARKET CAPITALISATION INVESTMENT PROPERTIES
43 Independent Market Overview
56 Board of Directors S$5.5 billion 20.8% S$7.0 billion 5.3%
60 Management Team & Property Management Team
64 Corporate Governance
82 Risk Management
85 Sustainability Report
103 Investor Relations
106 Financial Statements
NET ASSET VALUE PER UNIT GEARING RATIO
167 Interested Person Transactions
169 Statistics of Unitholdings S$1.60 7.4% 33.1% 1.4 p.p
171 Notice of Annual General Meeting
Proxy Form
Corporate Directory
CREDIT RATING (MOODY’S INVESTORS SERVICES) PORTFOLIO COMMITED OCCUPANCY
Baa1 (Stable) UNCHANGED 98.5% 1.0 p.p
VIVOCITY SHOPPER TRAFFIC VIVOCITY TENANT SALES
55.2 million 0.5% S$939.1 million 2.0%
Featured art piece on cover: Wind Sculpture I by Yinka Shonibare MBE
ANNUAL REPORT 2018/19 1
CORPORATE STRATEGY
OVERVIEW
KEY OBJECTIVES
VivoCity Mapletree Business City I
The Manager’s key objectives are to provide unitholders of MCT with a relatively attractive rate of return on their
investment through regular and steady distributions, and to achieve long-term stability in DPU and NAV per unit, while
maintaining an appropriate capital structure for MCT.
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PSA Building
Mapletree Commercial Trust (“MCT”) • PSA BUILDING, an established
is a Singapore-focused real estate integrated development with Dis
cipl nd
i ital a
investment trust (“REIT”) established a 40-storey office block and Risk ned Cap ent
Managem
with the principal investment objective a three-storey retail centre
of investing on a long-term basis, known as the Alexandra Retail KEY STRATEGIES
directly or indirectly, in a diversified Centre (“ARC”), located in the
portfolio of income-producing real Alexandra Precinct; VALUE CREATION THROUGH ACQUISITION DISCIPLINED CAPITAL AND
estate used primarily for office and/ • MAPLETREE ANSON, a 19-storey ACTIVE ASSET MANAGEMENT GROWTH RISK MANAGEMENT
or retail purposes, whether wholly or premium office building located The Manager’s strategy for organic The Manager will pursue potential The Manager will endeavour to:
partially, in Singapore, as well as real in Singapore’s Central Business growth is to actively manage asset acquisitions that will provide • Maintain a strong balance sheet;
estate-related assets. District (“CBD”); and the portfolio and foster strong attractive cash flows and yields • Employ an appropriate mix of
understanding and relationships with relative to MCT’s weighted average debt and equity in financing
• BANK OF AMERICA MERRILL
tenants. Through such active asset cost of capital, and opportunities for acquisitions;
MCT was listed on the Singapore LYNCH HARBOURFRONT
Mapletree Anson management, the Manager seeks to future income and capital growth. • Secure diversified funding
Exchange Securities Trading Limited (“MLHF”), a premium office
maintain high occupancy levels and sources to access both financial
(“SGX-ST”) on 27 April 2011 and is the building located in the
stable rental income. The Manager In evaluating acquisition institutions and capital markets;
third REIT sponsored by Mapletree HarbourFront Precinct.
also seeks to improve efficiency opportunities for MCT, the Manager • Optimise its cost of debt
Investments Pte Ltd (“MIPL” or the and manage costs through various will focus primarily on the following financing; and
“Sponsor”), a leading real estate The portfolio has a total Net Lettable aspects of its operations. investment criteria: • Adopt appropriate interest rates
development, investment, capital Area (“NLA”) of 3.9 million square • Value accretions; hedging strategies to manage
and property management company feet, valued at S$7,039 million1. The Manager aims to improve the • Yield thresholds; and exposure to market volatility.
headquartered in Singapore. performance of the properties • Quality of the asset, including
MCT is managed by Mapletree through the following measures: ° Location;
As at 31 March 2019, MCT’s portfolio Commercial Trust Management • Improving rentals while ° Asset enhancement potential;
comprised five properties located in Ltd. (“MCTM” or the “Manager”), a maintaining healthy occupancy ° Building and facilities
Singapore, namely: wholly-owned subsidiary of MIPL. rates and sustainable occupancy specification; and
The Manager aims to provide Bank of America Merrill Lynch HarbourFront costs; ° Tenant mix and occupancy
• VIVOCITY, Singapore’s largest unitholders of MCT (“Unitholders”) • Achieving high tenant retention, characteristics.
mall located in the HarbourFront with a relatively attractive rate of particularly for the office
Precinct; return on their investment through portfolio; The Manager intends to hold
• MAPLETREE BUSINESS CITY I regular and steady distributions, • Optimising tenant mix, acquired properties on a long-term
(“MBC I”), a large-scale integrated and to achieve long-term stability in particularly for the retail portfolio; basis. However, where the Manager
office and business park Distribution per Unit (“DPU”) and Net • Rejuvenating and reconfiguring considers that any property has
complex with Grade-A building Asset Value (“NAV”) per Unit, while retail space; reached a stage that offers limited
specifications, located in the maintaining an appropriate capital • Maximising yields through scope for income contribution or
selective asset enhancements; growth in the future, the Manager may
Alexandra Precinct; structure for MCT.
and consider selling it and use the sales
• Improving overall costs and proceeds for other purposes, such as
operational efficiencies. alternative investments in properties
1 Based on the independently appraised values by Knight Frank Pte Ltd (“Knight Frank”) and CBRE Pte
Ltd (“CBRE”) as at 31 March 2019 as disclosed in MCT’s announcement dated 23 April 2019.
that meet its investment criteria.
2 MAPLETREE COMMERCIAL TRUST ANNUAL REPORT 2018/19 3
FINANCIAL
HIGHLIGHTS
GROSS REVENUE NET PROPERTY INCOME DELIVERED HEALTHY RETURNS ON INVESTMENT TO UNITHOLDERS SINCE IPO
S$443.9 Year-on-year
S$347.6 Year-on-year
million 2.4% million 2.6%
433.5
443.9 114.8% 70.5% 185.3%
338.8
347.6 Capital Appreciation Total Distributions Total Return1
377.7
292.3
SELECTED FINANCIAL INFORMATION
282.5 287.8
220.7
211.7 As at 31 March 2015 2016 2017 2018 2019
Total Assets (S$ million) 4,262.8 4,415.2 6,405.7 6,740.8 7,100.8
Investment Properties (S$ million) 4,199.0 4,341.8 6,337.0 6,682.0 7,039.0
Total Debt Outstanding (S$ million) 1,550.5 1,550.5 2,327.6 2,327.6 2,349.0
Unitholders’ Funds (S$ million) 2,617.0 2,764.0 3,957.5 4,283.4 4,616.0
NAV per Unit (S$) 1.24 1.30 1.38 1.49 1.60
Market Capitalisation (S$ million) 3,379.1 3,003.3 4,392.8 4,521.8 5,461.5
FY14/15 FY15/16 FY16/17 FY17/18 FY18/19 FY14/15 FY15/16 FY16/17 FY17/18 FY18/19
KEY FINANCIAL INDICATORS
As at 31 March 2015 2016 2017 2018 2019
% of Fixed Rate Debt 68.2% 73.8% 81.2% 78.9% 85.0%
DISTRIBUTABLE INCOME DISTRIBUTION PER UNIT Gearing Ratio 36.4% 35.1% 36.3% 34.5% 33.1%
Interest Coverage Ratio (times) 5.3 5.0 4.9 4.8 4.5
S$264.0 Year-on-year
9.14 Year-on-year
Average Term to Maturity of Debt (years) 3.6 3.4 4.0 3.9 3.6
million 1.4% cents 1.1% Weighted Average All-in Cost of Debt (per annum) 2.28% 2.52% 2.66% 2.75% 2.97%
264.0 9.14 YIELD COMPARISONS2
260.4 9.04
8.62
227.2 8.13
8.00 MCT Distribution Yield3 4.8%
168.3 172.5
FTSE ST REIT Index 4.6%
Straits Times Index 4.2%
CPF Ordinary Account 2.5%
10-year Singapore Government Bond 2.1%
FY14/15 FY15/16 FY16/17 FY17/18 FY18/19 FY14/15 FY15/16 FY16/17 FY17/18 FY18/19 Banks Fixed Deposits 12 Months 0.6%
1 Based on unit issue price at IPO of S$0.88 and closing unit price of S$1.89 as at 31 March 2019, as well as total DPU of 62.06 Singapore cents paid out
since IPO.
2 As at 31 March 2019. Sources: Bloomberg, Central Provident Fund (“CPF”) Board (for the Ordinary Account’s yield) and the Monetary Authority of
Singapore (for the 10-year Singapore Government Bond Yield and Banks Fixed Deposit 12 Months Rate).
3 Based on closing unit price of S$1.89 as at 31 March 2019 and DPU of 9.14 Singapore cents for FY18/19.
4 MAPLETREE COMMERCIAL TRUST ANNUAL REPORT 2018/19 5
ASTUTE
NAVIGATION
Our continuous pursuit of excellence is guided by the
management’s clear vision and steadfast leadership.
With a capable and dedicated team at the helm, MCT
has successfully navigated changing landscapes and
remained at the forefront of the industry.
LETTER TO
UNITHOLDERS
MCT’s gross portfolio revenue grew 2.4% year-on-
year to S$443.9 million for FY18/19. NPI was S$347.6
million, surpassing last year’s record high by 2.6%.
Correspondingly, distributable income grew 1.4%
year-on-year to S$264.0 million.
MCT’s closing unit price of S$1.89 as AEI in 2015 created 15,000 square
at 31 March 2019, Unitholders who feet of retail space on Basement
have invested in MCT since day one 1, allowing us to capitalise on the
would have received a total return shopper traffic passing between the
exceeding 185%. MRT station and VivoCity’s main
atrium. A year later, we increased
VIVOCITY – OUR CROWN ASSET the number of food kiosks from 13
SHINING THROUGH to 21 on Basement 2, improved the
Our crown asset, VivoCity, continues line of sight for some restaurants,
to preserve its shine into the 12th year and introduced a popular hotpot
of operations. It registered robust restaurant on Level 3. Then in 2017,
performance in FY18/19, growing we converted approximately 9,200
3.0% in revenue and 3.6% in NPI square feet of anchor space on Level
year-on-year. Full year shopper 1 and Level 2 into higher-yielding
traffic reached 55.2 million in spite specialty space for existing tenants
of transitory impact and downtime who were expanding as well as new-
from enhancement works including to-mall brands.
the creation of concept stores and a
public library, expansion of Basement Most recently, we completed
1 and changeover of the hypermarket. VivoCity’s fourth AEI to add a public
library and to extend Basement 1.
VivoCity’s continued success is Being the largest scale AEI to date, the
derived from a multitude of factors. whole project required meticulous
Located within the southern corridor planning and execution. The AEI
of Singapore, the country’s biggest started in 3Q FY17/18 when the
mall offers more than a million Community/Sports Facilities Scheme
square feet of NLA, which houses (“CSFS”) allowed 32,000 square feet
a complete trade mix and features of commercial space on Level 3 to
Dear Unitholders, ventures have borne fruit – MCT surpassing last year’s record high by Left: an extensive waterfront promenade. be converted into Singapore’s largest
emerged stronger and delivered a 2.6%. Correspondingly, distributable Tsang Yam Pui With the HarbourFront MRT station library in a shopping mall in return for
Non-Executive Chairman
On behalf of the Board and noteworthy set of results in FY18/19. income grew 1.4% year-on-year to and Director nestled against Basement 2, the bonus GFA. The bonus GFA was then
management, we thank you for your S$264.0 million. Sentosa Express Monorail VivoCity used to extend the existing Basement
unyielding support in FY18/19. OUTSTANDING PERFORMANCE Right: Station located on Level 3, direct 1 of VivoCity, adding on seamlessly
Sharon Lim
IN AN EVOLVING MARKET Given the upward independent Executive Director and linkages to the Singapore Cruise to the entire Basement 1 shopping
Year by year, by harnessing our We are pleased to report a record revaluation of the portfolio as at Chief Executive Officer Centre@HarbourFront, and proximity experience. To improve vertical
collective strength and experience, DPU of 9.14 Singapore cents for the 31 March 2019, MCT’s total investment to the Sentosa Island, VivoCity enjoys connectivity and mobility within
we have made sound progress in full year, up 1.1% from the previous properties increased 5.3% to S$7.0 unrivalled connectivity and generous the mall, we took the opportunity
delivering value to our stakeholders. In year. This was driven by higher billion. NAV per unit rose 7.4% to shopper catchments. to add a fresh stack of escalators
our last letter to you, we shared how contribution from VivoCity, MBC I, S$1.60 as compared to a year ago. connecting Basement 2 and Level 1
the Manager’s stewardship has guided PSA Building and MLHF. Notwithstanding its fine physical through the new Basement 1 space.
MCT through structural shifts and Since MCT’s public listing on 27 April attributes, we have methodically The completion of this set of initial
economic uncertainties. Capitalising MCT’s gross portfolio revenue grew 2011 at S$0.88 per unit, we have undertaken several asset works was marked by the June 2018
on new opportunities that had arisen 2.4% year-on-year to S$443.9 million paid out a total distribution of 62.06 enhancement initiatives (“AEIs”) opening of the Basement 1 extension,
from the changing landscape, our for FY18/19. NPI was S$347.6 million, Singapore cents per unit. Given throughout the years. VivoCity’s first which houses ten exciting lifestyle and
8 MAPLETREE COMMERCIAL TRUST ANNUAL REPORT 2018/19 9
LETTER TO
UNITHOLDERS
athleisure brands spanning 24,000 To stay ahead of the competition, Shoppers today are driven by revenue and S$185.4 million of NPI, of MCT’s total debt was fixed by way and downside risks arising from
square feet of NLA. the management diligently keeps convenience. To us, this means up 1.8% and 1.7% respectively from of fixed rate debt or interest rate swaps weaker regional and global economies
abreast of market transformation and providing a shopping experience that a year ago, and further attained (“IRS”), giving us sufficient certainty due to further escalations in the
We finally welcomed the library, seizes suitable opportunities. A long- saves them time and effort. In July 8.7% rental uplift. MBC I and PSA on interest expenses. We maintained US-China trade war, a sharper-than-
library@harbourfront, into VivoCity standing retail trend – consolidation 2018, we rolled out the VivoCity SG Building closed the year with 98.1% a healthy interest cover ratio of expected slowdown of the Chinese
on 12 January 2019. Designed to – remains a force. This has prompted mobile application, a free one-stop and 96.4% committed occupancies approximately 4.5 times for FY18/19, economy and a “no-deal” Brexit.
serve all ages and integrated with retailers to consolidate their footprints portal for shoppers. By downloading respectively. Notwithstanding some and the all-in cost of debt stood at a
the latest interactive technology, this into efficient networks of stores in the app and becoming a VivoRewards tenant changeover, Mapletree Anson reasonable 2.97% per annum. Moody’s Retail consolidations will continue
community asset is a meaningful high quality locations in order to member, shoppers can easily browse achieved 97.8% committed occupancy. continued to endorse our assets’ as retailers optimise their portfolios,
addition to the mall. By fostering maximise efficiency. VivoCity, as an through the mall’s directory, find MLHF maintained full occupancy. quality, operating strength and financial adapt to e-commerce trends and
a culture of learning and reading, outstanding destination mall, has been out about the latest promotions and health by reaffirming MCT’s Baa1 issuer adjust to the tightening labour market.
it highly complements VivoCity’s a beneficiary of this consolidation. events in the mall, check available FORTIFYING OUR CAPITAL rating with a stable outlook. On the other hand, we have also
positioning as a family-centric During the year, established retailers parking spaces in advance, manage STRUCTURE observed how online retailers are
destination mall and also encourages such as Zara, Pull & Bear, Superdry as their membership statuses, and earn In managing our balance sheet, our UPHOLDING OUR PLEDGE increasingly expanding into traditional
repeat visits. Its official launch well as Marks & Spencer have decided VivoRewards with minimum hassle. modus operandi has been to fortify TO SUSTAINABILITY stores to bolster their presence.
concludes VivoCity’s fourth AEI that to expand in VivoCity to establish their the capital structure without losing We remain committed to upholding
delivered over 10% of annual return on larger format concept stores. On top OFFICE AND BUSINESS PARK ASSETS sight of the overall cost of debt. In high corporate governance standards To that end, our game plan is to
investment1 on a stabilised basis. of these, we continued our rigorous EXHIBITING ROBUSTNESS navigating today’s volatile interest and integrating sustainability efforts remain true to our fundamentals
approach in tenant mix management Our portfolio also consists of four rate environment, this approach into our daily operations. while charting our way forward. MCT,
In October 2018, we announced to bring in a wide variety of well- quality office and business park becomes even more relevant. Since with a capable management at helm,
that VivoMart would be replaced loved brands such as Bath & Body assets, namely MBC I, PSA Building, FY16/17, we have been proactive in At MCT, we endeavour to keep has weathered tides and stayed the
by Singapore’s leading grocer and Works, Beauty in the Pot, Da Paolo Mapletree Anson and MLHF. refinancing our debts with longer- our environment, employees and course to deliver consistent value
multi-format retailer, NTUC FairPrice. Gastronomia and Hans Im Glück. term notes and bank borrowings. community in good shape to ensure to our Unitholders. Our stable fleet
We are pleased that the changeover MBC I stands out as a best-in-class the success and sustainability of our of assets, led by two best-in-class
of the former VivoMart space on Beyond physical upgrades and integrated office and business park During the year, we continued to take business. Now, more so than ever, as properties, VivoCity and MBC I, will
Level 1 and Basement 2 has made tenant remixing, VivoCity’s success complex given its size, Grade-A advantage of favourable opportunities these various stakeholders become continue to sail forward resiliently.
good progress since 1 April 2019. is also buttressed by its curated mix building specifications, proximity to enhance our financial flexibility. more aware of their impact on the
FairPrice has started fit-out works of fun and shopper-centric activities to the CBD, complete suite of In June 2018, we entered into two ecosystem, their diverse perspectives ACKNOWLEDGEMENTS
for its integrated space of 91,000 that drive footfall and sales. A key facilities and amenities, as well revolving credit facilities totalling have taken more weight in shaping In closing, we would like to thank
square feet. Specifically designed to event was the collaboration with the as its lush greenery. Its premium S$150.0 million and increased our our sustainability plans and actions. our Directors for their stewardship
cater to the varied needs of today’s Walt Disney Company to present offerings have attracted a list of Multicurrency Medium Term Note and guidance, and our staff for their
shoppers, the new store comprises the “VivoCity x Disney Tsum Tsum established tenants such as HSBC, (“MTN”) Programme limit from Our third Sustainability Report shares industrious service and dedication.
a FairPrice Xtra hypermarket, a Unity Mid-Autumn: A Celebration of Love” the Info-Communications Media S$1.0 billion to S$3.0 billion. We our ongoing practices, improvement We would also like to welcome
pharmacy and a Cheers convenience campaign from 30 August 2018 to Development Authority, Unilever and further secured term loan facilities efforts and achievements across Mr Alvin Tay and Mr Wu Long Peng
store. Meanwhile, about 24,000 30 September 2018. VivoCity Sky Samsung. With its strong attributes aggregating S$345.0 million in July key material environmental, social who were appointed as Independent
square feet of remaining anchor Park was filled with more than 2,000 and solid tenant base, MBC I has and August 2018 for refinancing. and governance factors. As we Non-Executive Directors on
space from VivoMart on Level 1 and Disney Tsum Tsum lanterns and a continued to give MCT a stable These concluded the refinancing of continue to refine our sustainability 15 December 2018. We look
Basement 2 has been recovered and record-setting 10-metre tall Mickey anchor. Mainly driven by higher MCT’s term loans due up till FY19/20. framework, we have decided to forward to their invaluable counsel.
fully committed by tenants including and Minnie Mouse lantern installation. rental income from new leases and adopt seven new United Nations
Uniqlo, who is expanding its footprint The month-long festivity was the effects of step-up rents in existing MCT also kept ample debt headroom (“UN”) Sustainable Development Finally, our appreciation goes out
in VivoCity, as well as new lifestyle overwhelmingly received by shoppers leases, MBC I posted 0.9% and 0.4% of approximately S$1.5 billion (based on Goals (“SDGs”) this year. These to you, our Unitholders, tenants,
and mid-range food & beverage of all ages and widely covered by the year-on-year growth in FY18/19 the 45% regulatory limit) and the debt UN SDGs are long-term goals shoppers, financiers and business
(“F&B”) offerings. Scheduled for local, international and social media. revenue and NPI respectively. maturity profile stayed well-distributed which allow companies to dovetail partners, for your continued
completion by 2Q FY19/20, the entire On 21 December 2018, VivoCity held with no more than 20% of debt due for their sustainability strategies and confidence and resolute support.
changeover is expected to contribute its inaugural Christmas Late Night Our consistent approach in retaining refinancing in any financial year. operations so as to contribute
approximately 40% of annual return Shopping, with over 100 retailers quality tenants and engaging them towards global betterment.
on investment on a stabilised basis2, extending their operating hours till early to secure renewals with an Given the upward revaluation of TSANG YAM PUI
in addition to the positive rental uplift 2 a.m.. The Christmas celebrations emphasis on preserving cashflows our portfolio and total debt at S$2,349.0 STAYING THE COURSE Non-Executive Chairman and Director
from the new grocer. Collectively, also included an outdoor skating rink has paid off. In FY18/19, our office million, aggregate leverage was Singapore’s economy improved by
these changes will further enhance from 7 to 25 December 2018. and business park properties lowered to 33.1% (as at 31 March 2019) 3.1% in 2018 and has been forecast SHARON LIM
VivoCity’s retail offerings and appeal. contributed S$231.0 million of from 34.5% (as at 31 March 2018). As at to grow at 1.5% to 2.5% in 20191. Executive Director and
31 March 2019, approximately 85.0% However, there could be uncertainties Chief Executive Officer
1 Based on capital expenditure of approximately S$16.0 million, including expenditure for related works such as addition of escalator and carpark deck,
installation of solar panels for the new carpark shelter and various M&E upgrading works.
2 Based on estimated capital expenditure of approximately S$2.2 million. 1 Source: Ministry of Trade & Industry, Economic Survey of Singapore First Quarter 2019 dated 21 May 2019.
10 MAPLETREE COMMERCIAL TRUST ANNUAL REPORT 2018/19 11
YEAR IN
REVIEW
3 November 2018, VivoCity’s
inaugural Christmas Late Night
Shopping event on 21 December
2018, as well as our first-ever
outdoor skating rink at the Plaza
from 7 to 25 December 2018.
DECEMBER 2018
• Mr Alvin Tay and Mr Wu Long
Peng were appointed as
Independent Non-Executive
Directors for MCTM.
JANUARY 2019
1 2 4 • library@harbourfront, Singapore’s
largest shopping mall library,
was officially opened in VivoCity,
MAY 2018 AUGUST 2018 marking the successful completion
• Zara reopened at VivoCity with • Secured term loan facilities of of the mall’s fourth AEI.
a new 33,000 square feet S$85.0 million for refinancing. • VivoCity was voted and awarded
concept store that carries its • Completed refinancing of bank 2nd place in the Expat Living
complete collections for women, borrowings due in August 2018 Readers’ Choice Awards 2019 for
men and kids. and April 2019. the Best Shopping Centre.
• Participated in the REITs • Collaborated with the Walt • VivoCity ushered in the Lunar
Symposium 2018, reaching out to Disney Company to organise New Year with the hallmark
more than 1,200 retail investors. the month-long “VivoCity TANGS Chinese New Year Fair,
x Disney Tsum Tsum Mid- exciting performances and
JUNE 2018 Autumn: A Celebration of Love” beautiful decorations including
• As part of the mall’s fourth AEI, campaign. VivoCity Sky Park a scenic floral garden at the
VivoCity launched its Basement was transformed into a dazzling outdoor Plaza.
1 extension that houses ten 5 6 wonderland that was filled with • Declared DPU of 2.33 Singapore
exciting lifestyle and athleisure more than 2,000 Disney Tsum cents for 3Q FY18/19, up 1.3%
brands spanning 24,000 square 1 Zara’s concept store sprawling 33,000 square feet of space Tsum lanterns and a record- year-on-year.
2 Outdoor skating rink at the Plaza during Christmas
feet of NLA. 3 Official opening of library@harbourfront
setting 10-metre tall Mickey and
• VivoCity Kids Club celebrated 4 Lion dance performance during Lunar New Year Minnie Mouse lantern installation. MARCH 2019
its 1st Anniversary. 5 VivoCity x Disney Tsum Tsum Mid-Autumn: A Celebration of Love • Declared DPU of 2.31 Singapore
6 VivoRewards Kiosk
• Entered into two revolving 7 VivoCity Kids Club 1st anniversary celebration SEPTEMBER 2018 cents for 4Q FY18/19, up 1.8%
credit facilities totalling S$150.0 • Moody’s reaffirmed MCT’s Baa1 year-on-year. Full year DPU
million and increased MTN (Stable) issuer rating. reached a record 9.14 Singapore
programme limit from S$1.0 • Introduced the VivoCity SG fundraising event where cents, up 1.1% from FY17/18.
billion to S$3.0 billion to enhance mobile application, a free one- participants shave their heads in OCTOBER 2018 • MCT’s portfolio of properties
financial flexibility. stop portal for shoppers to support for children with cancer. • Announced the changeover of were valued at S$7.0 billion,
easily browse through the mall’s • Partnered with Soles4Soul, a hypermarket at VivoCity. up 5.3% from a year ago.
JULY 2018 directory, find out about the latest non-profit social enterprise that • Declared DPU of 2.27 Singapore Correspondingly, NAV per unit
• MCT held its 7th Annual General promotions and events, manage aims to create sustainable jobs cents for 2Q FY18/19, up 1.3% rose 7.4% to S$1.60.
Meeting (“AGM”) with Unitholders their membership statuses, and provide relief through the year-on-year. • VivoCity and The Walt Disney
approving all resolutions tabled. and earn VivoRewards with distribution of shoes and clothing Company jointly won the Silver
• Announced DPU of 2.23 minimum hassle. around the world. During the NOVEMBER 2018 award for the Best Event-Led PR
Singapore cents for 1Q FY18/19. • VivoCity continued to support period, two large collection • VivoCity celebrated Christmas Campaign at the PR Awards 2019
• Secured term loan facilities Hair for Hope as venue sponsor boxes were placed in VivoCity with shoppers with a magnificent for the “VivoCity x Disney Tsum
aggregating S$260.0 million and partner. This is the Children’s for the public to donate their extravaganza, including Black Tsum Mid-Autumn: A Celebration
for refinancing. Cancer Foundation’s signature pre-loved footwear. 7 Friday sales from 23 to 25 of Love” campaign.
12 MAPLETREE COMMERCIAL TRUST ANNUAL REPORT 2018/19 13
UNIT PRICE
PERFORMANCE
FY18/19 was a tumultuous year for the global financial S$1.89 on 31 March 2019, up 20.4% from the closing TRADING VOLUME OF MCT AND COMPARATIVE TRADING PERFORMANCE
market. The escalation in the US-China trade conflict, price of S$1.57 from a year ago. Taking into account
130.0% 50
Brexit, global growth concerns, as well as rising total distribution of 9.14 cents paid out for FY18/19, MCT MCT Unit Price +20.4%
MCT Daily Trading Volume (million units)
interest rates and reduced monetary stimulus, took delivered a total return of 26.2% to Unitholders. 45
120.0%
their toll on investor confidence. As a result, volatility
Closing Price on 31 March 2018
40
Daily Closing Price as a % of
picked up. Closer to home, Singapore’s economy Driven by consistent and steady performance since IPO, 110.0% FTSE Straits Times 35
grew by 3.1% in 2018, a moderation from the 3.7% MCT’s unit price has gained 114.8% from the IPO price of REIT Index +5.2%
growth recorded in 2017. S$0.88. Including total distribution of 62.02 cents paid, 30
100.0%
MCT has delivered 185.3% of total return to Unitholders. 25
Against this backdrop, the FTSE Straits Times Index MCT’s market capitalisation has also grown from S$1.6 90.0% FTSE Straits Times
20
Index -6.3%
retracted 6.3% during the financial year. The FTSE billion at IPO to S$5.5 billion as at 31 March 2019. Over
80.0% 15
Straits Times REIT Index, on the other hand, gained the same period, the FTSE Straits Times Index and the
5.2% for the same period. MCT’s unit price closed at ST REIT Index were up 0.7% and 29.0% respectively. 10
70.0%
5
60.0% 0
UNIT PRICE AND TRADING VOLUME APR 18 MAY 18 JUN 18 JUL 18 AUG 18 SEP 18 OCT 18 NOV 18 DEC 18 JAN 19 FEB 19 MAR 19
FY18/19 FY17/18
MCT Trading Volume MCT Unit Price FTSE Straits Times REIT Index FTSE Straits Times Index
Closing price on the last trading day prior to the period (S$) 1.570 1.530
Highest closing price (S$) 1.910 1.690
Lowest closing price (S$) 1.540 1.510
COMPARATIVE TRADING PERFORMANCE SINCE LISTING
Volume weighted average price (S$) 1.669 1.572
Closing price for the period (S$) 1.890 1.570 230.0%
MCT Unit Price +114.8%
Daily Closing Price as a %
210.0%
Average trading volume (million units) 5.91 5.63
190.0%
Total trading volume (million units) 1,478 1,402
of IPO Price
170.0%
FTSE Straits Times REIT Index +0.7%
150.0%
130.0%
RETURN ON INVESTMENT 110.0%
FTSE Straits Times Index +29.0%
90.0%
1-year from 3-year from 5-year from Since Listing on
70.0%
1 April 2018 1 April 2016 1 April 2014 27 April 2011
50.0%
Total return as at 31 March 2019 (%) 26.21 53.01 90.11 185.32
APR 11 APR 12 APR 13 APR 14 APR 15 APR 16 APR 17 APR 18 MAR 19
Capital appreciation (%) 20.4 34.0 54.9 114.8
Distribution yield (%) 5.8 19.0 35.2 70.5 MCT Unit Price FTSE Straits Times REIT Index FTSE Straits Times Index
Closing price on the last trading day prior to
Source: Bloomberg
the period/Unit issue price at listing (S$) 1.570 1.410 1.220 0.880
1 Sum of distributions and capital appreciation for the period over the closing unit price on the last trading day prior to the commencement of the period. MCT is a constituent of these key indices1
2 Sum of distributions and capital appreciation for the period over the unit issue price at listing.
Source: Bloomberg Bloomberg Asia Pacific FTSE EPRA Nareit Developed iEdge APAC ex Japan Dividend
Financial Index Asia Index Leaders REIT Index
Bloomberg Asia Pacific World Index FTSE EPRA Nareit Singapore Index iEdge SG Real Estate 20 Index
Bloomberg Asia REIT Index FTSE Global Equity Index Series iEdge S-REIT Index
Bloomberg World Financial Index FTSE ST All-Share iEdge S-REIT 20 Index
Bloomberg World Index FTSE ST Real Estate Index MSCI Singapore Small Cap Index
Bloomberg World REIT Index FTSE ST REIT Index S&P Developed REIT Index
Dow Jones Global Select REIT Index FTSE ST Financials Index S&P Global BMI
FTSE ASEAN All-Share Index GPR General (World) Index S&P Global REIT USD Index
FTSE Developed Asia Pacific All Cap GPR General ex-US Index S&P Pan Asia REIT Index
FTSE EPRA Nareit Developed Index GPR General Singapore Index S&P Pan Asia Ex Japan REIT Index
1 The list of key indices is not exhaustive.
14 MAPLETREE COMMERCIAL TRUST ANNUAL REPORT 2018/19 15
TRUST ORGANISATION
STRUCTURE STRUCTURE
Mapletree Commercial Trust Management Ltd. is the Mapletree Commercial Property Management Pte. Ltd. is
BOARD OF DIRECTORS AUDIT AND RISK COMMITTEE
Manager of MCT. The Manager has general powers of the property manager of MCT (the “Property Manager”).
management over the assets of MCT. The Manager’s main The Property Manager is responsible for providing
Mr Tsang Yam Pui Ms Kwa Kim Li Mrs Jennifer Loh
responsibility is to manage MCT’s assets and liabilities property management, lease management, project
Non-Executive Chairman Lead Independent Chairperson
for the benefit of Unitholders. The Manager will set the management, marketing and administration of property
and Director Non-Executive Director
strategic direction of MCT and give recommendations to tax services for the properties in MCT’s portfolio. The Mr Koh Cheng Chua
the Trustee on acquisitions, divestments, developments Property Manager is a wholly-owned subsidiary of the Mrs Jennifer Loh Mr Kan Shik Lum
and/or enhancements of the assets of MCT in accordance Sponsor. The following diagram illustrates the relationship Independent Non-Executive Independent Non-Executive Mr Premod P. Thomas
with its stated investment strategy. The Manager is a between MCT, the Manager, the Property Manager, the Director Director
wholly-owned subsidiary of the Sponsor. Trustee and the Unitholders.
Mr Koh Cheng Chua Mr Premod P. Thomas
Independent Non-Executive Independent Non-Executive
NOMINATING AND
Director Director REMUNERATION COMMITTEE
Mr Alvin Tay Mr Wu Long Peng
Independent Non-Executive Independent Non-Executive Ms Kwa Kim Li
UNITHOLDERS Director Director Chairperson
Mr Hiew Yoon Khong Mr Wong Mun Hoong Mr Kan Shik Lum
Non-Executive Director Non-Executive Director
Mr Hiew Yoon Khong
Ms Amy Ng Ms Sharon Lim
Ownership of Units Distributions
Non-Executive Director Executive Director and
Chief Executive Officer
Management Trustee’s
Services Fees
MANAGER TRUSTEE
Management Acts on behalf
Fees of Unitholders CHIEF EXECUTIVE OFFICER
JOINT COMPANY SECRETARIES
Ms Sharon Lim
Mr Wan Kwong Weng
Ownership of Assets Net Property Income Ms See Hui Hui
Property
Management VIVOCITY INVESTMENTS &
FINANCE
Services MBC I ASSET MANAGEMENT
PROPERTY MANAGER PSA BUILDING Ms Janica Tan
MAPLETREE ANSON Mr Koh Wee Leong
Chief Financial Officer Head
Property MLHF
Management
Fees
FINANCE INVESTOR RELATIONS INVESTMENTS &
ASSET MANAGEMENT
Ms Regina Ong Ms Teng Li Yeng Ms Goh Peck Cheng
Vice President Vice President Vice President
16 MAPLETREE COMMERCIAL TRUST ANNUAL REPORT 2018/19 17AY
ER
RA
W
PROPERTY
ES
JA
T
H
C
EX
O
AS
PR
OVERVIEW T
ES
H
SW
IG
H
AY
W
AY
MCT’s portfolio comprises five properties DHOBY
GHAUT
located in Singapore’s Alexandra Precinct, EAST COAST PARKWAY
AY
CITY
E R
HALL
HarbourFront Precinct and the CBD.
RA
KENT RIDGE PARK
JA
H
W
EX
ES
PR
T
CO HORTPARK
ES
RAFFLES
AY
SW
AS
T PSA CHINATOWN PLACE W
AY
H MBC I SS
IG RE
H
W BUILDING EX
P
AY L
VIVOCITY AY
SW DOWNTOWN AS
TA
ES TELOK AYER
Singapore’s largest mall with ALEXANDRA DHOBY PR CO
EX OUTRAM NA
PRECINCT MOUNT GHAUT AL PARK CENTRAL RI
1,078,789 square feet of NLA spread NTR MA
PASIR FABER CE CITY
BUSINESS
EAST COAST PARKWAY
over a three-storey shopping PANJANG HALL
TANJONG MARINA DISTRICT
LABRADOR TELOK PAGAR BAY
PORTFOLIO NET complex and two basement levels. PARK
MLHF VIVOCITY
CHINATOWN
AYER RAFFLES
HORTPARK
10 MINUTES DRIVE PLACE
LETTABLE AREA Strategically located in the heart FROM CBD TELOK MAPLETREE SW
AY
BLANGAH ANSON ES
of the HarbourFront Precinct, this MBC I PSA HARBOURFRONT DOWNTOWN
XP
R
BUILDING AY
3.9 LABRADOR SW TANJONG CENTRAL LE
ES TA
iconic development is directly PSA BUILDING NATURE RESERVE
ALEXANDRA HARBOURFRONT E X PR PAGAR BUSINESS OAS
L OUTRAM C
A DISTRICT INA
connected to the HarbourFront An established integrated PRECINCT MOUNT PRECINCT
NT
R PARK R
PASIR FABER CE MA
million sq ft
BRANI
Mass Rapid Transit (“MRT”) station development with a 40-storey PANJANG MAPLETREE MARINA
ISLAND
and enjoys exceptional connectivity office block and a three-
LABRADOR MLHF VIVOCITY ANSON BAY
PARK RESORTS
TELOK WORLD
to Sentosa and the HarbourFront storey retail centre, ARC, with an BLANGAH HARBOURFRONT
SENTOSA
LABRADOR HARBOURFRONT
Centre. VivoCity is positioned as a aggregate NLA of 523,958 square NATURE RESERVE PRECINCT
multi-dimensional retail and lifestyle feet. PSA Building’s excellent location BRANI
ISLAND SENTOSA
destination for Singaporeans and within the Alexandra Precinct, a RESORTS
WORLD
SENTOSA
tourists alike, offering visitors a short distance from the CBD, makes
unique waterfront shopping and it an ideal choice for companies
dining experience. For the year who prefer a quality office location SENTOSA
ended 31 March 2019, VivoCity outside the CBD. ARC further offers
PORTFOLIO APPRAISED VALUE attracted 55.2 million visitors and a wide range of amenities and F&B MAJOR EXPRESSWAYS
MAJOR EXPRESSWAYS
S$7,039
MRT STATION
S$939.1 million of tenant sales. offerings to the working population
in the vicinity.
MRT STATION
SENTOSA EXPRESS LINE
MBC I
million
MAJOR EXPRESSWAYS
SENTOSA EXPRESS LINE
An outstanding and large-scale MAPLETREE ANSONMRT STATION MCT PROPERTIES
PROPERTIES integrated business hub located A 19-storey premium office building
SENTOSA EXPRESS LINE
in the Alexandra Precinct with an located in the Tanjong Pagar micro NATURE PARK
NATURE PARK PROPERTIES
aggregate NLA of 1,707,202 square market of the CBD with an NLA
feet. Completed in April 2010, of 328,912 square feet. Mapletree
NATURE PARK
MBC I comprises four blocks of Anson was completed in 2009 with
office and business park spaces with Grade-A specifications and is one
Grade-A specifications. The user- of the first buildings in Singapore
friendly features, recreational facilities to be awarded the Green Mark
and amenities, as well as wide public Platinum certification by the BCA.
spaces and lush greenery, makes It is conveniently located within a
MBC I a complete “work and play” two-minute walk from the Tanjong
SINGAPORE
environment. MBC I is conveniently Pagar MRT Station and connected to CHANGI
AIRPORT
located within an approximate major arterial roads and expressways. SINGAPORE CHANGI
ten-minute drive from the CBD and AIRPORT
enjoys excellent linkages to the MLHF
adjacent PSA Building, Mapletree A premium six-storey office building
Business City II, as well as the with an NLA of 215,734 square feet. CENTRAL BUSINESS DISTRICT
Labrador Park MRT Station. Its Completed in August 2008, MLHF ALEXANDRA
HARBOURFRONT PRECINCT
PRECINCT
environmentally sustainable design features modern office specifications
and features have garnered several such as large and efficient column- CENTRAL BUSINESS DISTRICT
local and international awards, free rectangular floor plates of ALEXANDRA
PRECINCT HARBOURFRONT PRECINCT
including the Green Mark Platinum approximately 46,000 sq ft and MAP ZOOMED OUT
Award from Singapore’s Building and integrated suspended ceiling and
Construction Authority (“BCA”). raised floors.
18 MAPLETREE COMMERCIAL TRUST ANNUAL REPORT 2018/19 19PROPERTY
OVERVIEW
VIVOCITY A three-storey shopping complex with two basement levels and an
eight-storey annexe carpark
Net Lettable Area 1,078,789 square feet
Number of Leases 354
GROSS REVENUE Car Park Lots 2,183
Title Leasehold 99 years commencing from
S$212.9 Gross Revenue
1 October 1997
S$212.9 million
million Net Property Income
Market Valuation
S$162.3 million
S$3,200 million
Committed Occupancy1 99.9%
Key Tenants VivoMart, Tangs, Zara, H&M, Golden Village
Awards and Accolades Expat Living Readers’ Choice Awards 2019
– Best Shopping Centre (2nd Place)
PR Awards 2019 Southeast Asia by
Marketing Magazine
– Best Event-Led PR Campaign for “Disney
NET PROPERTY x Tsum Tsum Mid-Autumn: A Celebration
INCOME of Love” Campaign (Silver Award)
S$162.3 1 Actual occupancy was 99.4%.
Lease Expiry Profile by Gross Rental Income
million (as at 31 March 2019)
30.0%
23.7%
21.6%
13.1% 11.6%
COMMITTED
OCCUPANCY FY19/20 FY20/21 FY21/22 FY22/23 FY23/24
99.9%
& beyond
Number of Leases
MCT’s crown asset, VivoCity, continues to shine into its
60 91 135 41 27
12th year of operations. Stemming from our proactive
management efforts, VivoCity has withstood the test of Trade Mix by Gross Rental Income
(as at 31 March 2019)
time and remains one of Singapore’s most outstanding
Food & Beverage 31.1%
destination malls. Its consistently solid performance Fashion 20.4%
further stands out in today’s changing landscape. Fashion Related 10.8%
Hypermarket / Departmental Store 9.4%
Beauty 6.2%
FY18/19 revenue and NPI grew 3.0% and 3.6% Lifestyle 5.5%
respectively to reach S$212.9 million and S$162.3 Sports 5.4%
Electronics 4.7%
million. In spite of transitory impact and downtime from
Entertainment 2.9%
VivoCity’s fourth AEI, including the changeover of the Others2 3.6%
hypermarket, that were implemented in FY18/19, VivoCity 2 Others includes Optical, Retail Bank, Education, Services, Medical and Convenience.
welcomed 55.2 million shoppers during the year. Data are as at 31 March 2019. Gross revenue and NPI are for the financial year ended 31 March 2019.
20 MAPLETREE COMMERCIAL TRUST ANNUAL REPORT 2018/19 21PROPERTY
OVERVIEW
VIVOCITY TENANT SALES
S$939.1 million
951.8 958.2
939.2 939.11
908.9
5
FY14/15 FY15/16 FY16/17 FY17/18 FY18/19
1 Due to transitory impact from AEI, changeover of hypermarket
and rigorous management of tenant mix during FY18/19.
1 2
SHOPPER TRAFFIC
55.2 million
6
55.8
55.0 55.2
53.2 53.2
3 4 7 FY14/15 FY15/16 FY16/17 FY17/18 FY18/19
1 First-ever makerspace for children in a public library 4 Spacious atrium for exclusive shoppers events
2 VivoCity Sky Park filled with more than 2,000 Disney Tsum Tsum 5 New Basement 1 extension with ten new exciting brands
lanterns and record-setting lantern installation 6 New and refreshing concepts introduced in FY18/19
3 Vibrant outdoor play area 7 Exclusive world of fun for VivoCity Kids Club members
22 MAPLETREE COMMERCIAL TRUST ANNUAL REPORT 2018/19 23PROPERTY
OVERVIEW
MAPLETREE
BUSINESS CITY I
GROSS REVENUE
S$127.1 An integrated office and business park development comprising one 18-storey office tower (MBC 10)
million and three business park blocks (MBC 20E, MBC 20W and MBC 30)
Net Lettable Area 1,707,202 square feet
Number of Leases 37
Title Strata Lease commencing from 25 August 2016 to 29 September 2096
Gross Revenue S$127.1 million
Net Property Income S$104.2 million
NET PROPERTY Market Valuation S$2,018.0 million
INCOME Committed Occupancy 1
98.1%
S$104.2 Purchase Price
Date of Purchase
S$1,780.0 million
25 August 2016
million Key Tenants The Hongkong And Shanghai Banking Corporation Limited, Info-Communications
Media Development Authority, SAP Asia Pte. Ltd., Unilever Asia Private Limited
1 Actual occupancy was 97.8%.
Lease Expiry Profile by Gross Rental Income Trade Mix by Gross Rental Income2
(as at 31 March 2019) (as at 31 March 2019)
MBC I has been lauded as a best-in-class integrated COMMITTED 36.2%
office and business park complex. Conveniently OCCUPANCY Banking & Financial Services 24.9%
98.1%
located in the Alexandra Precinct, it enjoys close 19.9%
Government Related 16.0%
18.9%
proximity to the CBD. Furnished with Grade-A building 18.1% Consumer Goods 13.4%
specifications, full suite of facilities and amenities, Electronics 10.8%
as well as lush greenery, MBC I has attracted a list of 6.9% IT Services & Consultancy 9.7%
well-established tenants. Shipping Transport 7.4%
Pharmaceutical 5.8%
FY19/20 FY20/21 FY21/22 FY22/23 FY23/24
Mainly driven by higher rental income from new leases & beyond Real Estate 4.2%
and the effects of step-up rents in existing leases, Number of Leases Energy 4.1%
MBC I posted 0.9% and 0.4% year-on-year growth in 5 11 7 9 5 Others3 3.8%
FY18/19 revenue and NPI respectively. With its strong 2 Total does not add up to 100% due to rounding.
3 Others include F&B, Education, Medical and Fitness.
attributes and solid tenant base, MBC I will continue to
be a stable anchor for MCT’s long-term performance. Data are as at 31 March 2019. Gross revenue and NPI are for the financial year ended 31 March 2019.
24 MAPLETREE COMMERCIAL TRUST ANNUAL REPORT 2018/19 25PROPERTY
OVERVIEW
PSA BUILDING An integrated development comprising a 40-storey office building
and a three-storey retail centre
Net Lettable Area 523,958 square feet
GROSS REVENUE Number of Leases 118
S$50.5 Car Park Lots
Title
749
Leasehold 99 years commencing from
million Gross Revenue
1 October 1997
S$50.5 million
Net Property Income S$38.5 million
Market Valuation S$763.0 million
Committed Occupancy 1
96.4%
Purchase Price $477.2 million
Date of Purchase 27 April 2011
NET PROPERTY Key Tenants Office:
INCOME PSA Corporation Limited, Mapletree Investments
S$38.5
Pte Ltd, Casino Regulatory Authority
Retail:
million FairPrice, McDonald’s, Auntie Kim's Korean
Restaurant, Ichiban Sushi
1 Actual occupancy was 96.4%.
Lease Expiry Profile by Gross Rental Income2 Trade Mix by Gross Rental Income
COMMITTED (as at 31 March 2019) (as at 31 March 2019)
OCCUPANCY
52.6%
Shipping Transport 34.1%
96.4% Government Related 14.7%
Food & Beverage 12.2%
14.7%
14.3% 13.1% Trading 11.6%
5.2% Real Estate 6.3%
Banking & Financial Services 4.7%
FY19/20 FY20/21 FY21/22 FY22/23 FY23/24
& beyond Energy 2.4%
Situated in the Alexandra Precinct, PSA Building remains
IT Services & Consultancy 2.3%
an attractive asset that is recognised by many tenants to Number of Leases
Others3 11.7%
be a quality alternative to a CBD office. 27 37 38 12 4
2 Total does not add up to 100% due to rounding.
3 Others includes Hypermarket / Departmental Store, Education, Medical,
Its retail podium, ARC, provides a wide range of F&B, Insurance, Sports, Retail Bank, Beauty, Lifestyle, Fashion Related,
Convenience, Electronics, Optical and Consumer Services.
convenience and services offerings to the working
population in the vicinity. Data are as at 31 March 2019. Gross revenue and NPI are for the financial year ended 31 March 2019.
26 MAPLETREE COMMERCIAL TRUST ANNUAL REPORT 2018/19 27PROPERTY
OVERVIEW
MAPLETREE ANSON A 19-storey office building in the CBD with Grade-A building
specifications
Net Lettable Area 328,912 square feet
Number of Leases 22
GROSS REVENUE
Car Park Lots 80
S$33.6 Title Leasehold 99 years commencing from
22 October 2007
million Gross Revenue
Net Property Income
S$33.6 million
S$26.9 million
Market Valuation $728.0 million
Committed Occupancy1 97.8%
Purchase Price $680.0 million
Date of Purchase 4 February 2013
Key Tenants J. Aron & Company (Singapore) Pte.,
Yahoo! Southeast Asia Pte. Ltd.,
NET PROPERTY Allied World Assurance Company, Ltd.,
INCOME WeWork Singapore Pte Ltd
S$26.9
1 Actual occupancy was 96.8%.
Lease Expiry Profile by Gross Rental Income
million (as at 31 March 2019)
42.4%
31.6%
9.5% 9.6%
6.9%
COMMITTED
OCCUPANCY
97.8%
FY19/20 FY20/21 FY21/22 FY22/23 FY23/24
& beyond
Number of Leases
2 3 10 3 4
Mapletree Anson is an attractive quality office building
situated in the Tanjong Pagar micro-market. Featuring Trade Mix by Gross Rental Income2
(as at 31 March 2019)
Grade-A building specifications such as large floor-plate
of over 20,000 square feet per floor, Mapletree Anson Trading 26.4%
IT Services & Consultancy 26.2%
has attracted a solid tenant base comprising quality and
Banking & Financial Services 20.3%
reputable MNCs. Insurance 8.0%
Real Estate 6.7%
Mapletree Anson was 97.8% committed as at 31 March Electronics 5.3%
Energy 2.1%
2019. The Manager will continue to pursue a proactive
Others 5.1%
leasing strategy including early engagements to retain
2 Total does not add up to 100% due to rounding.
quality tenants and attract new ones. Data are as at 31 March 2019. Gross revenue and NPI are for the financial year ended 31 March 2019.
28 MAPLETREE COMMERCIAL TRUST ANNUAL REPORT 2018/19 29PROPERTY
OVERVIEW
BANK OF AMERICA MERRILL
LYNCH HARBOURFRONT (“MLHF”) MLHF continued to perform well in FY18/19.
With its full occupancy by three esteemed tenants,
it registered 7.6% and 9.4% year-on-year growth in full
GROSS REVENUE year revenue and NPI respectively, and will continue
S$19.7 to deliver steady returns.
million A six-storey office building with a basement carpark
Net Lettable Area 215,734 square feet
Number of Leases 3
Car Park Lots 94
Title Leasehold 99 years commencing from
1 October 1997
NET PROPERTY Gross Revenue S$19.7 million
INCOME Net Property Income S$15.8 million
S$15.8 Market Valuation
Purchase Price
$330.0 million
$311.0 million
million Date Of Purchase
Occupancy
27 April 2011
100.0%
Key Tenant Merrill Lynch Global Services Pte. Ltd.
Lease Expiry Profile by Gross Rental Income
(as at 31 March 2019)
89.0%
OCCUPANCY
100.0%
11.0%
FY19/20 FY20/21 FY21/22 FY22/23 FY23/24
& beyond
Number of Leases
– – – 2 1
Data are as at 31 March 2019. Gross revenue and NPI are for the financial year ended 31 March 2019.
30 MAPLETREE COMMERCIAL TRUST ANNUAL REPORT 2018/19 31STRENGTH &
RESILIENCE We are focused on optimising MCT’s portfolio to enhance
value for our stakeholders. What drives our ongoing effort
in lifting our assets’ performance is our sharp focus on
meeting the needs of our tenants and shoppers. Through
proactive and forward-looking asset management, we strive
to constantly add resilience and strength to our portfolio.OPERATIONS
REVIEW
PORTFOLIO PERFORMANCE by Mr S. Iswaran, Minister for converted into specialty shops. The Steady Performance by Office PSA Building maintained better SUMMARY OF LEASES
Demonstrating the underlying Communications and Information, recovered space on Basement 2 and and Business Park Assets than market occupancy of 96.4%. COMMITTED IN FY18/19
strength of our asset management on 12 January 2019. The 32,000 Level 1 of the former hypermarket MCT’s focus on retaining quality The completion of the upgrading The retention rate of our tenants in
effort and portfolio, MCT continued square feet library, the largest area has been fully committed by tenants and engaging them early to of common areas and toilets at the FY18/19 was 67.3%, largely reflecting
to generate steady growth in shopping mall library in Singapore, tenants including Uniqlo, an existing secure renewals enabled its office office floors in FY18/19 added to our proactive lease management to
gross revenue, NPI and valuation is designed to suit all ages and tenant which is doubling its footprint and business park assets to perform the continued attractiveness of constantly refresh the tenant mix to
in FY18/19. MCT’s portfolio gross is integrated with interactive in VivoCity, as well as new lifestyle steadily. In FY18/19, the office and the building. keep VivoCity relevant in a rapidly
revenue increased 2.4% year-on-year technology. The library complements and mid-range F&B offerings. business parks assets achieved 8.7% changing retail environment. Key
to S$443.9 million while portfolio VivoCity’s positioning with its focus rental uplift, largely due to the short- Notwithstanding some tenant changes during the year included
NPI grew 2.6% to S$347.6 million, on families with children, and this While shopper traffic for FY18/19 term extension of a major tenant at changeover, Mapletree Anson the replacement of the hypermarket
with overall NPI margin at a healthy well-placed addition is expected to grew 0.5% year-on-year to 55.2 PSA Building. achieved 97.8% committed operator to NTUC Fairprice.
level of 78.3%. As at 31 March 2019, encourage repeat visits to VivoCity million, tenant sales dipped 2.0% occupancy. MLHF continued to
the committed occupancy of the and strengthen its attractiveness as year-on-year to S$939.1 million due MBC I closed the year with contribute to MCT’s portfolio stability On a portfolio basis, rental rates for
portfolio remained high at 98.5%. a destination mall. to the transitory impact from the occupancy of 97.8% and committed and maintained full occupancy renewed and new leases in FY18/19
Driven by strong asset performance AEI, changeover of hypermarket and occupancy of 98.1%. The property throughout FY18/19. saw an average increase of 5.4%
and robust market sentiments, the On a stabilised basis, this AEI which rigorous management of tenant mix continued to be an anchor to MCT’s against preceding fixed rents at the
total value of MCT’s investment cost approximately S$16.0 milllion, during the year. Occupancy cost stable and sustainable performance end of the expiring leases (including
properties grew 5.3% to S$7.0 billion delivered an annual return on remained at a sustainable level of with revenue and NPI increasing 0.9% the effect of rent review of a key
as at 31 March 2019. investment of over 10%. 20.5%. Overall, VivoCity achieved and 0.4% respectively year-on-year. tenant at MBC I).
a positive 3.4% rental uplift, with
ACTIVE ASSET MANAGEMENT To keep the mall relevant in a rapidly 29.8% of the mall’s NLA being
AND LEASING changing retail environment, VivoCity renewed or re-let. Number of Leases Retention Rate % Change in
Increasing Vibrancy at VivoCity introduced a number of new and Committed (by NLA) Fixed Rents1
FY18/19 marked another exciting year exciting retail concepts during the year. Record-Setting Lantern Installation Retail 169 60.0% 3.5%2
for MCT as we witnessed the fruition New and larger format concept stores at VivoCity Sky Park
of VivoCity’s 4th and largest scale by existing tenants, Zara, Superdry and As part of our ongoing effort to Office/Business Park 23 73.8% 10.3%
AEI to date. The year-long, multi- Pull & Bear, opened in 1Q FY18/19, curate fun and shopper-centric
• Including rent review3 – – 8.7%
phased AEI largely consisted of the further defining VivoCity’s positioning events to drive footfall, VivoCity
conversion of about 32,000 square as a key destination mall. Marks & partnered with The Walt Disney MCT Portfolio 192 67.3% 5.5%
feet of retail space on Level 3 into Spencer also expanded its footprint Company to present the “VivoCity x
MCT Portfolio
a public library under the National to introduce a food hall concept. Disney Tsum Tsum Mid-Autumn: – – 5.4%
• Including rent review3
Library Board through the CSFS Amongst the popular new brands A Celebration of Love” campaign.
and decanting the retail space from that were introduced to the mall The collaboration transformed
1 Based on the average of the fixed rents over the lease period of the new leases divided by the preceding fixed rents of the expiring leases. Rent reviews
Level 3 to create an extension of the include 6ixty8ight, Bath & Body Works, VivoCity Sky Park into a lantern are typically not included in the calculation of rental reversions.
existing Basement 1 retail space. Beauty In The Pot, Hans Im Glück and wonderland that was filled with 2 Includes the effect of trade mix changes and units subdivided and/or amalgamated.
Paradise Teochew Restaurant. more than 2,000 Disney Tsum 3 Includes the effect of rent review of a key tenant at MBC I for approximately 195,000 square feet of space.
The Basement 1 extension was Tsum lanterns as well as a 10-metre
launched in June 2018, adding We were also delighted that NTUC tall Mickey and Minnie Mouse
approximately 24,000 square feet of FairPrice, Singapore’s leading installation that set the Asia Book
new NLA that houses ten exciting grocer and multi-format retailer, of Records for the largest lantern
lifestyle and athleisure brands. In will enter VivoCity with a new sculpture. Held from 30 August
addition, a new set of escalators integrated hypermarket concept by to 30 September 2018, the event
connecting Basement 2 to Level 2Q FY19/20. At 91,000 square feet, was overwhelmingly received by
1 was added to enhance vertical this will be NTUC FairPrice’s largest shoppers of all ages and widely-
connectivity within the mall. Other hypermarket in Singapore, featuring a covered by the local, international
works carried out with this AEI new integrated concept designed to and social media. The event also
included the addition of solar panels cater to the varied needs of today’s clinched the Silver award for the
on the new roof-top carpark shelter, shoppers. It will house a FairPrice Best Event-Led PR Campaign at
addition of toilets on Basement 1 and Xtra hypermarket, a Unity pharmacy, the PR Awards 2019 Southeast
upgrading of the water feature at the and a Cheers convenience store. Asia, an annual awards programme
outdoor Plaza. organised by the Marketing-
Together with the changeover of the Interactive Magazine to recognise
The much anticipated library@ hypermarket operator, 24,000 square the efforts of PR practitioners on
harbourfront was officially launched feet of space will be recovered and both the client and agency side.
34 MAPLETREE COMMERCIAL TRUST ANNUAL REPORT 2018/19 35You can also read
