Mapletree Greater China Commercial Trust still a ‘buy’ despite 2Q dip

SINGAPORE (Oct 31): OCBC Investment Research is keeping its “buy” recommendation for Mapletree Greater China Commercial Trust but lowering its fair value estimate to $1.15, from $1.18 previously.

Taking into account expectations of lower occupancy and net property income (NPI) margin at MGCCT’s Gateway Plaza, the research house cut its distribution per unit (DPU) forecasts for FY17 and FY18 by 3.6% and 4.3%, respectively.

MGCCT posted a 2.4% decline in DPU to 1.765 cents for 2Q17 as gross revenue fell 1.9% to $83.1 million and NPI dropped 3.2% to $67.3 million.

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