OCBC deems this as a firm set of results and in line with expectations, with NPI for 9MFY19 forming 75.2% of its full-year forecasts.
In a Tuesday report, analyst Andy Wong says he continues to like MNACT for its resilient portfolio with near-full occupancy at 99.7% and positive rental reversions.
This comes despite some softness in tenant sales, especially at Festival Walk due to market uncertainties and a softer residential property market.
Nonetheless, Wong says occupancy cost for Festival Walk remains healthy at 19.4%, which is marginally lower than from 19.5% from the previous quarter.
He also believes MNACT is still trading at a healthy yield as at $1.25 at the close of Monday, which implies a FY19F and FY20F distribution yield of 6.1%.
“In terms of financial position, MNACT’s gearing ratio remained stable at 39 %. MNACT has hedged 85% of its debt (+7 ppt q-o-q), while ~82% of its estimated FY19 distributable income has been hedged into SGD,” says Wong.
Units in MNACT were trading 1 cent lower at $1.23, or a FY19F distribution yield of 6%, prior to the midday trading break.
