Mapletree Commercial Trust
OTC:MPCMF
US |
Fubotv Inc
NYSE:FUBO
|
Media
|
|
US |
Bank of America Corp
NYSE:BAC
|
Banking
|
|
US |
Palantir Technologies Inc
NYSE:PLTR
|
Technology
|
|
US |
C
|
C3.ai Inc
NYSE:AI
|
Technology
|
US |
Uber Technologies Inc
NYSE:UBER
|
Road & Rail
|
|
CN |
NIO Inc
NYSE:NIO
|
Automobiles
|
|
US |
Fluor Corp
NYSE:FLR
|
Construction
|
|
US |
Jacobs Engineering Group Inc
NYSE:J
|
Professional Services
|
|
US |
TopBuild Corp
NYSE:BLD
|
Consumer products
|
|
US |
Abbott Laboratories
NYSE:ABT
|
Health Care
|
|
US |
Chevron Corp
NYSE:CVX
|
Energy
|
|
US |
Occidental Petroleum Corp
NYSE:OXY
|
Energy
|
|
US |
Matrix Service Co
NASDAQ:MTRX
|
Construction
|
|
US |
Automatic Data Processing Inc
NASDAQ:ADP
|
Technology
|
|
US |
Qualcomm Inc
NASDAQ:QCOM
|
Semiconductors
|
|
US |
Ambarella Inc
NASDAQ:AMBA
|
Semiconductors
|
Utilize notes to systematically review your investment decisions. By reflecting on past outcomes, you can discern effective strategies and identify those that underperformed. This continuous feedback loop enables you to adapt and refine your approach, optimizing for future success.
Each note serves as a learning point, offering insights into your decision-making processes. Over time, you'll accumulate a personalized database of knowledge, enhancing your ability to make informed decisions quickly and effectively.
With a comprehensive record of your investment history at your fingertips, you can compare current opportunities against past experiences. This not only bolsters your confidence but also ensures that each decision is grounded in a well-documented rationale.
Do you really want to delete this note?
This action cannot be undone.
52 Week Range |
0.8905
1.16
|
Price Target |
|
We'll email you a reminder when the closing price reaches USD.
Choose the stock you wish to monitor with a price alert.
Fubotv Inc
NYSE:FUBO
|
US | |
Bank of America Corp
NYSE:BAC
|
US | |
Palantir Technologies Inc
NYSE:PLTR
|
US | |
C
|
C3.ai Inc
NYSE:AI
|
US |
Uber Technologies Inc
NYSE:UBER
|
US | |
NIO Inc
NYSE:NIO
|
CN | |
Fluor Corp
NYSE:FLR
|
US | |
Jacobs Engineering Group Inc
NYSE:J
|
US | |
TopBuild Corp
NYSE:BLD
|
US | |
Abbott Laboratories
NYSE:ABT
|
US | |
Chevron Corp
NYSE:CVX
|
US | |
Occidental Petroleum Corp
NYSE:OXY
|
US | |
Matrix Service Co
NASDAQ:MTRX
|
US | |
Automatic Data Processing Inc
NASDAQ:ADP
|
US | |
Qualcomm Inc
NASDAQ:QCOM
|
US | |
Ambarella Inc
NASDAQ:AMBA
|
US |
This alert will be permanently deleted.
Good morning, everyone. Apologies for the delay. A very warm welcome to Mapletree Commercial Trust Results Briefing for the Fourth Quarter and Full Financial Year from 1st April 2018 to 31st March 2019. For anyone who are here physically and tuning into the webcast, thank you very much for your time.
Today's presentation is based on the fourth quarter and full year results presentation that was announced and published last evening. You can download it directly from our website or from SGX.
Without further ado, I would like to introduce our management team with us today. They are Ms. Sharon Lim, CEO of Mapletree Commercial Trust management; Ms. Janica Tan, CFO; and Mr. Koh Wee Leong, Head of Investment and Asset Management.
We will start with the financial results to be presented by Janica and Wee Leong will then talk through the operational performance of our portfolio. We will then open the floor to questions from participants as well as webcast participants.
Janica, please?
Okay. Good morning, everyone. I hope I am not too soft today.
Okay. Let me start off with some key highlights of MCT's fourth quarter results. As of fourth quarter last year, gross revenue was 3.7% higher at $112.9 million and NPI up 3.9% to $87.6 million. These were mainly driven by higher year-on-year contribution from VivoCity, PSA Building and MLHF offset by lower contribution from MBC I. On a full year basis, gross revenue and NPI were up 2.4% and 2.6% year-on-year, respectively. DPU for the quarter was $0.0231, up 1.8% as compared to last year, leading the full year DPU to a record of $0.0314 (sic) [ $0.0914 ].
MCT revalues its property annually in March. Based on the latest independent valuation, total value of investment property rose 5.3% to $7 billion, and NAV per unit was 7.4% higher at $1.60 as compared to a year ago.
In terms of portfolio performance, VivoCity continued to achieve sustained growth in earnings. Fourth quarter gross revenue and NPI grew 4.9% and 5.9%, respectively, from the fourth quarter last year, while the full year gross revenue and NPI grew 3% and 3.6%, respectively, from FY '17/'18.
Shopper traffic at VivoCity also reached a record high, $55.2 million, in spite of transitory impact of AEI, changeover of hypermarket and rigorous management of tenant mix during the year.
Two quarters ago, we announced the replacement of VivoMart by NTUC FairPrice. So FairPrice has started fitting out work for an integrated space of about 91,000 square feet, while the remaining, about 24,000 square feet of recovered space Level 1 and B2 has been fully committed. The entire changeover will deliver ROI of approximately 40% on a stabilized basis. This is in addition of the rental uplift from the changeover of the VivoMart release to NTUC. The entire AEI is scheduled for completion by second half of FY '19/'20.
Okay. In terms of capital management, I will touch on this at the later part of the presentation.
Okay. This is the financial scorecard. For fourth quarter, our property performed better than last year except for MBC I. VivoCity continued to achieve sustained growth in earnings mainly due to higher rental income from new and redeemed leases achieved together with all the AEI that we have done so far and the effect of the step-up rate in existing leases. For the office assets, mainly PSA Building and MLHF and Mapletree Anson, gross revenue and NPI was 6.5% and 7.9% higher, respectively, as compared to last year.
Okay. For MBC, while the fourth quarter revenue for MBC I was marginally lower by 0.4% year-on-year, its full year revenue and NPI was 0.9% and 0.4% higher, respectively, from a year ago due to higher rental income from new leases and the effect of step-up rate in existing leases.
Net finance costs for the quarter were 7.6% higher year-on-year at $17.5 million due to the full year effect of the refinancing done with MTN and stronger tenant rules. New rules were also brought on during the year for working capital as well as the higher percentage of fixed rate debt and SOR as compared to last year. All this contributed to the higher finance cost. Accordingly, the fourth quarter FY '18/'19 distributable income was $66.9 million, up 3.1% year-on-year. The DPU for the quarter was $0.0231, up 1.8% year-on-year.
Okay. Now then we continue. On a full year basis, gross revenue was $44.3 million, up 2.4%; and NPI was $347.6 million, 2.6% higher as compared to last year. Generally, our property performed better than last year except for Mapletree Anson due to lower occupancy. Income available for distribution for FY '18/'19 grew 1.4% to $264 million. And consequently, the DPU grew 1.1% to a new record of $0.0914.
This is the latest valuation information. The portfolio value increased from $6.7 billion to $7 billion. This was mainly attributable to cap rate compression and better performance of the underlying asset, such as VivoCity.
In terms of balance sheet, MCT continued to maintain robust balance sheet in spite of the volatile interest rate. With the upward revaluation of investment property, NAV per unit is now $1.60 as compared to the $1.49 as at 31 March 2018.
In terms of key indicators, total debt was kept at $2.35 billion as at 31 March 2019. During the quarter, we added on new IRI, bringing the percentage of fixed rate debt to 85%, giving MCT sufficient certainty on interest expenses. At 85% fixed, every 25 bps change in SOR will have a RMB 0.03 per annum impact on DPU. And given the upward revaluation of the property on 31 March and the total debt kept at $2.35 billion, leverage was lower to 33.1% from the 34.8% last quarter. Interest coverage ratio was kept at approximately 4.5x. Term to maturity is now 3.6 years, and the weighted average volume all-in cost is at 2.97% per annum.
This is the debt maturity profile of MCT as at 31 March 2019. The next refinancing is in November 2019, $50 million MTN. This is our first MTN maturity.
This is our new slide. As part of our proactive capital management effort, we have been extending and spreading our debt maturity profile all this year. As you can see from this slide, refinancing for the past 2 to 3 year were with longer-tenor instrument and also longer-tenor loans. So about 40% of our debt outstanding is on longer-tenor MTN, achieving diversification of MCT's funding source. So although this increased our interest cost, we think overall our cost of debt still remain competitive. So as a result, you can see from this debt profile, this balanced spread is no more than 30% of debt due for refinancing in any financial year.
Okay. So this is full year. This is our overall 1 year sum-up performance. All arrows are pointing at the right direction. The market cap actually rose more than 20% to $5.4 billion, making MCT the fourth-largest REIT by market cap as at 31 March.
Unit price performance. MCT unit price performance has been consistent and steady and has continuously outperformed various indexes.
This is the total return to unitholder. We continued to deliver steady total return. Total return since IPO is in excess of 185%, and for FY '19/'20, it's more than 26%.
The last one will be on the distribution detail. $0.0231 DPU for the period of 1 January to 31 March that we declared, and BCD is 2 May, DPD is on 30 May.
Okay. I hand over to Wee Leong.
Good morning, everyone. I'll run through the portfolio performance and some details on what has been done at VivoCity or are going to do at VivoCity. If you look at portfolio revenue and net property income, gross revenue year-over-year is up 2.4% and net property income is up 2.6%.
On a full year basis only, Mapletree Anson's NPI was slightly lower than the previous year due to very slightly lower occupancy this year versus last year. MBC, PSAB and VivoCity center NPIs were up. MBC is largely due to step-up in the leases. PSAB's improved NPI again is largely due to slightly better leasing. One short-term lease taken at -- based a little bit above market and that helped contribute to the increase in NPI.
For VivoCity, step-up in the leases had been under reversions as well as upside from the AEI contributed to the up to 2.6% increase in NPI year-over-year. So occupancy on the portfolio basis is slightly improved on previous year. That's largely due to VivoCity, where the same time last year we had quite an above AEI going on and that affected occupancy quite a bit. So Vivo's occupancy actually improved from 93% 1 year ago to now 99.9% committed.
So rental reversions at both office and retail portfolio are healthy. On the office side we recorded 10.3%, on retail side is 3.5%.. On a portfolio basis, we are at 5.5%.
Lease expiry profile remains well spread. On a portfolio basis, we're committed. Lease expiry of -- weighted average lease expiry is 2.9 years, on retail is 2.8 years and for Office/Business Park is slightly longer at 3 years.
So this gives you the top 10 tenants. We are still very well diversified, and this contributed to 25.5% of the total portfolio revenue.
Trade mix wise also very well diversified. The top few renters are F&B, Banking & Financial Services, fashion and government related.
Now onto the portfolio of VivoCity. Shopper traffic reached a high of 55.2 million visitors last year. Tenant sales is slightly down, and that's largely due to 2 periods where we had quite a lot of shops down. The first was in the beginning of the financial year where the [indiscernible] enhancing initiatives for Level 3 library as well as Basement 1 was still ongoing. And that impacted occupancy as you have seen in real, and as a result, impacted tenancy of that period as well.
The last quarter as well as the end of the calendar year, we had already mentioned that VivoMart is actually moving out and MBC is coming in. So they had had a period of reinstatement and their trading was actually down all the way from the November to end of period all the way to all the financial year. So that last year accounted for the impact in the fourth quarter. So as a result, on a full year basis, the tenant sales overall is down 2%.
Okay. Just to give you a bit of color on NTUC FairPrice. They are thinking about 91,000 square feet. The space is on Level 1 as well as Basement 2. It will be an integrated concept, where it will have a hypermarket, a pharmacy as well as a convenience store. The fit-out -- they have taken over the premises on 1st of April and currently undergoing fit-out, should open within next few months.
So if you notice the space that FairPrice taking out is a little bit less than what VivoMart had in the past, we had taken back the space on Level 1 as well as on Basement 2 and have that leased out to higher unit specialty stores. So on Level 1 that's largely lifestyle and fashion, on Basement 2 largely F&B as well as a little bit of food retail. We expect the return on investment to be quite good from CapEx of about $2.2 million.
That brings me to the end of the presentation.
Thank you, Janica and Wee Leong for bringing us through slides. We'll now open the floor for questions and answers. [Operator Instructions]
Mervin from DBS. So we can start with VivoCity. In terms of rental reversions 3.5% from last year, in terms of the recovered space from that Johnson market, is that already captured in that number? So there's been -- is it -- will you capture in the next few quarters? In terms of guidance for rental reversion, do you think you can maintain the 3.5% pace or will it be slightly higher?
Okay. The recovered space from the growth is a combination of Level 1 and Basement 2. So the numbers in terms of the recovered space, ROI is 41%. That's separate from the rental reversion for the 90-over thousand. So the entire space was 100-over thousand, which was at 20-over thousand. The balance is recovered as rental reversion. So the rental reversion is in order of 10-or-more percent, and that is in addition to the recovered space of 20-over thousand ROI that we will be getting. So that's not calculated in the rental reversion. So just to recap, the NTUC needs, there's no downtime in terms of the cash flow. So even though they are doing fitting out works and reinstate, there is no -- they are still paying us. They are still paying us rent from day 1. So even with them paying us rent from day 1, the rent was already in order of double-digit higher than the previous tenancy. So the next question is the rental reversion we have been tracking 3-over percent. Based on what I'm seeing, I think we are quite okay for this year, yes.
And then in terms of balance sheet, gearing is very strong. I was wondering whether your sponsor will allow you to deploy a balance sheet?
Okay. I think that has always been the question that people are asking. Either we're doing a deal? Are you going to be doing a deal? Capital market seems to be behind you. I'm not in quite 100% control. In terms of who is triggering the sale, it's an offer. They have to be -- they had to be motivated to show . And we will have to look at the asset. As I said before, if you look at the quality and the tenancy, I think, confidently, I will say that it's a good fit to the current portfolio. And yes, all has been [sold]. That's why it's an offer to MCT, yes.
And actually, when we look at our [value] -- go back to [the slide]. This quarter we did about [5.4%] just going through with the value of last -- presenting all the details in all. Looking at the price of VivoCity is 2,000, the cap rate 4.6%, but our current view based on the increased number is actually slightly over 5% because the value as we do the valuation, there's certain assumptions that they impute in, like for example, vacancy and they also take down for things like the renting and all. But initial view is over 5%. And based on the current transactions [ given reservation transaction ] that may be, definitely very well supported. The valuation, I'm very, very confident. If you look at VivoCity at $3,000 a square foot, I think is -- even though it's quite a bit of increase, it's well supported.
So the not so good price for Vivo. I think you may take it as slightly coming down to also for -- that can easily be accounted for. From day 1 where we talked about changing the Level 1 tenancy and the library space -- to incorporate the library, we have to shutdown a lot of shops. And that was quarter 2. Quarter 2 already accounted for about $9 million to $10 million of sales. How I calculate that was, if the shops continue as it was without the construction works, that will have cost us about $9 million, $10 million of sales. Then on top of that, VivoMart itself was progressively closing down in anticipation of their reinstatement. They even started close to Christmas already even though they're going to hand us the unit on 31st of March. So the whole VivoMart already cost us about $20-over million of sales. So just taking these 2 sectors is already -- these 2 groups is already over $30 million of sales. And 2% equates to about 21%. So all I'm saying is, just looking at these 2 is quite clearly that I can attribute it to 1 [reinstatement and] moving on affecting the sales. So generally, I will say the rest of them is still in good steady state. In terms of the sales that is tracking in VivoCity, yes.
[indiscernible] the second one is on your fixed debt. I think it has gone up quite a fair bit, so obviously that is pretty good. But in a potentially lower rate environment, is this something that you guys are willing to kind of reverse? I mean, a little bit more floating to enjoy that kind of uplift there?
I'll leave the second question to Janica. In terms of office, I think you can see that our rental reversions reached close to 10%, 8.7% or above for the office sector. That is as a group. But I can attribute that positive -- very, very, very positive. If you notice our initial quarters, it was minus, minus and now it's a major plus. It's attributed to one very, very huge tenancy. That gave us very, very, very huge upside, more than 15%, but it was for a shorter term of lease rather than the atypical, okay? So when we look at that -- in terms of cash flow, I'm [indiscernible] signing any typical 3-year lease, is slightly shy of 3 years. It's more punitive and the tenant is actually moving to a new location. So it's more punitive. I'm enjoying it, but I will have to definitely revert back a little bit to market for that unit when it comes to expiring.
So back to your question. I mean, there is -- the uplift in terms of what you're seeing in the market, I think we are a little bit of a laggard, no doubt, although numbers say otherwise. My numbers are saying like 8%, 9%, but I can attribute it to 1 lease rather than the general method of interest. But in terms of talking about big jumps -- in terms of office rent, I don't think that will be, okay? If anything, it be a little bit more muted, a bit more muted, but it will be steady. We have been operating close to 100%, so we struggle every time. Because when a tenancy changes [close to] first 3 to 4 months and there are no fitting out period, for which I do not collect the rent. That is always our issue. Because whatever step up of reversion that I get, I change a tenancy, I get higher rent, I suck out everything. So sometimes I actually do prefer that a tenant actually don't move. To save my rent, I'm not going to get that tremendously higher. I prefer they don't move. Because if I can cater the expansion, I will rather do it. Then if I bring in a new tenant, it gives me a 10% upside. I suffer for 4 months or so if it's a big tenant. Out of the 3-year lease, cash flow actually is nominal on a total basis. So I will say that we will -- we feel that the market is slightly better than the previous few years, but it's not like super fantastic. But I will say that it's definitely better than previous years, yes.
Okay. On the interest percentage of fixed rate debt. Actually in March when U.S. announced [indiscernible] 2019 and slow pace in balance sheet, you notice that the yield curve remains slightly inverted for this one year to fourth year swap, but the shop run rate remain high and very, very high. As of yesterday, it's still at 1.94%. So what you do see from the slide is our percentage office is not 85% in April quite a big amount of interest rate swap is dropping off. So what we are doing now is taking advantage of the assistance of inverted curve. We place the interest rate swap a quarter in advance.
So in next quarter, you will see the percentage of fixed rate debt may not be as higher unless they continue to [ allow the ] weak interest rate, so during these 2 months. So our policy is to keep our percentage of fixed rate debt at above 70%. Regardless of whatever will be certainly within -- above 70%. So anything more than that will be really depend on opportunity that will be advantage of this lookup to refinance all our interest rates for FY '19 '20.
Based on the latest CapEx for MBC I, can you roughly give us evaluation for MBC II? Would you have a sense, just in my [indiscernible], how can that...
I don't have eval. Get away for the annual report I would think so. Okay, I'm not serious. I will say that the basis can't differ that much because we're sitting on a next-door neighbor. I can -- the visible difference is definitely age, which definitely the valuers who are -- there is some impact in terms of the calculation because of age. The other thing I would say that the valuers will always look at is always your passing rent and the buildup. That, to me, will be the difference in the -- resulting in a difference in eval. So exactly what's eval, I'm not -- I have no idea. But these are the 2 very obvious ones that I think that will be the difference between the 2. Number one is rent, depending on what rent is signed, what rent I have, evaluations will reflect that, cap rate can't differ that much. If anything, it must be adjusted for the age of the building, yes. That's what the valuers are doing. It can't vary that much, yes. So depends on the rent because what is the rent.
Sharon, Pratik from HSBC. My question is on a point that you highlighted earlier that the issue on your sector is more around movement of tenants as opposed to anything else. So if you look at your portfolio, you mentioned there's one lease that you've done with the large tenant, which was in a relatively short-term basis, I believe there are some other smaller assets there. It's been speculated that tenants could move out. Can you give us...
Okay. Okay, I can give you some color. Tenants moving up, question mark, yes. I think that one as a whole for a while because I don't really see tenants from -- smaller tenants moving out from our building. If the whole portfolio -- just to put it in term -- to put in perspective, yes, my 3 office assets is about 20% of entire portfolio. Within the 3 assets, 1 asset, which is called Merrill Lynch, is totally destocked. I don't have to think about it for another, what, 3 years thereabout. So what's left to talk about is PSA and Anson. Between the 2, I would say that, okay, Uber is going out in -- has already gone out in Anson. So that one, we are very close to signing somebody up. So I think we should be in good shape. If you talk about PSA itself. PSA, we have done quite a bit of reshuffling. There's little pockets here and there, but there are no big shapes.
What I'm more concerned about or to be focused is, I enjoy the over 50% rental reversion. As of face I'm using in more than a year's time. The lease is not like 3 months, the lease is actually close to a full 20. We said that we went on a very clear -- we went on a very prudent difference for that. I have to face that because the rent reached up and up so high because it's the last leg. So that's finding a replacement to make that quite clearly. The market -- they're not being in the market, right, at a punitive rent. So that's where I have to revert out. But to me, I was very clear. We take a cash flow upfront rather than accelerating over 3-year term was a different, yes. If there are lot tenants moving up, no? But we do have one that is potentially -- that is currently on a corkage. That one I have to tell you guys. I think it's on a public which is really our eyes are focused on it. They have 2 floors for us, one floor is under corkage, okay? One floor is under corkage. So that one, they have an impact on numbers. It's about 1-month rent, it's about 200-over thousand. I think that will give you a sense. So that, to me, is 1 tenancy that I just have to watch over. I can't do very much, it's some like for order, it's under liquidation or whatever you call it, [indiscernible] I can't do anything. But we do have a replacement standby already. In terms of anything goes off, we'll pull off and remove all, yes. So I think that is 1 tenancy that out of the 400 tenancies that we manage that we have to watch over.
Sharon, I was specifically referring to, let's say, the PSAB itself, right? I mean, are you in discussions with respective tenants to -- I mean, can you give us any update on that front?
We don't share the details. We are way ahead of time. Right now, we do have a -- we actually have a few combinations that we can look at in terms of using the space. Because we are talking about -- we can take 1% taking 80, another split up to the balance of 20, split up to 2 tenancies or I split up to 4 tenancies. So there are options. I think I'm not that concerned today that I think that I cannot lease it up. I think I would be able to lease it up. I just have to make sure I move the cash flow as high as possible. Because for managing office, the issue has always been where the start -- the time, the possession or the start of the tenancy can happen. Because not all tendencies will fall magically, like okay, I want this day, removing on this day. They may have an existing tenancy somewhere else that we should be extinguished before they can move into the new location. So what I am saying is, I think we're in good track -- yes, on track. Timing-wise, we still have good time. You have more than a year to look at it, yes. But come that time, you're going to see a big negative. Definitely, you'll see a negative because I'm getting 50-over percent jump in total rent. But, yes, I'm enjoying it to-date.
[indiscernible] from Macquarie. Just wanted to spend a bit more time on this 40% ROI. The denominator is $2.2 million, the CapEx spend. The numerator-wise, just confirm, is the delta before and after for the entire area, right?
No, no, no. Just the 20-over [ space ]. Okay, we have 100-over thousand. 90-over thousand goes to NTUC. That one is 10-over percent rental reversion that goes in rental reversion number. The retrieve area, okay, is the before rent -- after rent minus the before rent divided by the construction cost, okay? So my after rent is whatever I signed, minus the before rent, which is the VivoMart's rent and divide by construction cost.
It is just the specialty area?
Okay. Yes, yes, yes. Well, everything [indiscernible]. Well, NTUC will be my most -- we love it. But as overall beyond numbers, operationally, management-wise, I'm confident that it will be better than before. Based on the state of where we were, nothing has really happened over the 10 years. The space was, to me, a bit degenerated and needs to be moved, needs to be upgraded. And I think we are going in the right direction. I'm very confident it will be valid and serious because my previous was a very low benchmark. So I would say that I'm confident, it will be better. It will get better, even just the floor, how they change it, it's already better, don't worry. It's the way I see the wrong thing. Yes?
Just going back to Vivo again. In terms of the library, have you seen most [indiscernible] impact on putting in library? And also in terms of [ Jurro ] opening [indiscernible] Vivo and we can [indiscernible] do you see any noticeable impact short-term?
Okay. As [indiscernible] open impact you can only see for one weekend because you already opened last week to the public. I will say, how to quantify the library, I would say that it's very hard to quantify and say, "hey, moving team to Vivo because of the library. And moving came for [ line simple ] order book, as according to 50% as a headcount, hard for me to say so. So I can't give you a number. But definitely, the sense in a mix who we're targeting, it fits our purpose, okay? It fits the whole purpose of my positioning as a family mall and the library catering over to the professionals. I had a feedback that at the end of the day, there's quite a bit of youngsters who actually go there. I'm not talking about youngsters, I am talking about young professionals going there if they go out. They're going for the professional exams, quite a number go there, yes. And from the [process] malls, on the first month that they opened in January, they were telling me that the number of people passing through, plus the borrowing rate is the highest in Singapore. So they're hoping that it maintains. So they are -- the NLB is actually very, very pleased with the results number and borrowing rates because number can be January open, everybody just wants to know the details, everyone have to look at it. But borrowing rate is also the highest since what we shared in January.
So I will say that it's one of the -- their top library, and they are hoping to do more programming within the library. So that fits our purpose. Because at the end of the day, the more programming they do, the better it is, even be educational, it fits the sudden purpose. And for us, we are hoping to do a bit more kid stuff with them because we also have the kid stuff where we can tie back to. So talking about [ Jurro ], it's a new mall. So definitely everybody, there's a novelty impact. I mean, everybody would have to have a look at it. I would say that I've seen a lot pretty pictures on it, very, very nice. Would that be an impact on me? I will say, initial period may be, because everybody would say, let's have a look at it, and yes, the hot call back to day-to-day shopping. I am betting on my [indiscernible] to cater to the typical family that comes back on a weekly basis, okay? 1 million, 600,000, I say they are decent mall. I'm not saying they're not decent, yes, don't get me wrong here. They're good mall. But I'm still catering to the day-to-day family and definitely food is also one of the big component. In terms of distance, we're also not that near each other. We -- in a way that innovative side by side. I think there are other malls that should be more very, very, very afraid rather than us, yes. Don't ask me who, they should be very afraid.
Sharon, just wondering your thoughts on, what is your team thinking about VivoCity in terms of the next leg. I mean, you have moving signs of tenants, you're bringing process, and so any other [indiscernible] things are little bit higher in your view.
Okay. We first started 5 years ago. We talked about going for generic spaces, flagship stores. I started going down anchor by anchor. I told you that look at my 5. We slowly moving down one by one. We are not finished all, we're not finished all. If you just look at my top 5, I am not touched everybody yet. I'm not saying that we have to -- we're going to change them over. No, no, no. Don't get me wrong. I'm talking about getting them more up-to-date, getting them a little bit more rejuvenated and say, look at our top 5. VivoMart is the biggest, this year. So give me some breathing time, it takes a while. It took us 2 years to work on this deal. And right now, they're doing bidding up there and we should be enjoying it July 2, onward. They'll be opening in July.
Second one GV. GV will be some upgrading actually one, a cinema. We are not want to change over cinema. I think they are a good operator. But financially, we will be enjoying the numbers because tenancies were 10 years ago. So I would say that numbers-wise, we are in good shape. That's one. C.K. Tang, we did a little bit. We took back 9,000 of space, cut it up, injected a new escalator. It still has actually went up by about -- close to 7 to 10 overall, at least mid-single digit, which is a nice change for C.K. Tang because for a long while, they have been quite stagnant. But right now, I think they are in better shape after we injected the new escalator from the library, works together with opening of Basement 1. So haven't fully looked at it. Do we need to? My team tells me, "Hang on, they are improving," which is true in terms of their sales. So there is no urgency. And I think they are still relevant. Maybe a few years' time, if things don't go so well, I still can do -- we wouldn't stay. That was the reason which I also shared, that back on the scene, why we did the escalator 1 was also to improve the mobility of the people from Basement 2 all the way up.
On top of that, it's quite surely, anything happens because this lot is huge, long, big, okay? It's very small, the frontage, in relation to the design, it's very, very huge. You want to cut it? No frontage, no way, provide you inject another secondary corridor throughout. So that's what's -- where we thought about improving the mobility plus injecting the escalator, lending into the anchor space, okay? We help the anchor today, but reducing options to do something later on when there is a hardware in footfall landing on Level 1. So there is no urgency. They are still so okay. They are still so increasing, but it's just long-term. Long-term-wise, you just have to make provisions, just in case, and it's always good for the mall to improve the mobility of the people. Then come number 4. Number 4 is the best and key and all. I haven't touched them. Do we need to do something a bit higher, the stores? Definitely need to renovate or whatever that may be. Give us some breathing time, when we are ready, we will share if there's any plan. Number 5 is Toys"R"Us. Toys"R"Us, we will keep it as it is. It's still relevant. My friend goes there very often. So she'll be very sad if I remove Toys"R"Us. Anyway, joke aside, Toys"R"Us is still relevant. It's always chockablock of people. And that unit, like I said, it gives me decent rent, not the easiest to deal with. If you have been to our Toys"R"Us, it's very small frontage, very, very deep back. So I will love them to stay. I will love for them to stay there and not to give me any headache because it's still relevant to us and still giving me a decent rent, yes. So I think we will slowly move down the line.
Okay. I hope you give Toys"R"Us a long lease. My son goes there, too.
Maybe have a rally of all the kids if you -- Toys"R"Us -- if something happens to Toys"R"Us.
But you can be one way. I'm just wondering whether your tenants performing up to your expectations.
B1?
Yes.
Yes, yes, yes, it is. B1, most of the tenants, the feedback -- I mean based on the feedback, initial period was so very, very okay. Typically, like I always say, if my leasing team don't start giving me negative feedback, it means it's okay. And generally, we do monitor their sales on a monthly basis, yes. No issue. No issue.
Okay. I'm just wondering -- I mean maybe if you're on MCT but together with HarbourFront, do -- are we thinking even longer term that potentially they could come in and make your -- the mall more vibrant, in terms of overall remake for the whole place?
We are already 5 years.
Okay.
And so we are actually connected on the Level 2. I would say that I think they may have some plans as to what they want to do. But quite clearly, it has -- it will blend in if anything happens in terms of whatever they want to do, okay? I'm talking about super long-term plan. If you ask me -- if you look at whole -- the entire master plan of this entire southern waterfront, Vivo is stand -- will stand to benefit from this whole thing. From this side, down to the entire chockablock of residential that they have really plotted down, all the way, we should be in good shape or even better shape for the future. So I would say that we'll -- do we -- well, anybody who want to do something about HarbourFront, I think, yes, it's possible, it's still -- it's of a certain age. Would I want to look at it in terms of -- it's a local asset. I will prefer it in the redeveloped form, if you ask me. What form, I don't know because I don't own the asset now. But I will prefer it in a redeveloped form. Down -- we can look at the whole -- depending on the size, then we can actually look at remixing. But right now, I will say that our mix is there. But there's 7 pockets I think we cannot fill. Like for example, if I have a hypermarket, I cannot have -- I will refrain from putting that, say a gourmet -- literally high-end gourmet supermarket, which I think still has this little niche, too near each other. But if I have a really big shopping center, I will replan slightly differently in terms of how we lay out the common area spaces and some of the key anchors, yes.
Okay. Sorry, last question for me. I was just wondering about your office portfolio, right? Currently, they're all -- they are talking about non-flex operators, coworking. Do you think that's something that your portfolio can cater to? Or...
We have 1 floor in Anson. We have been pursued for a few floors here, a few floors there. I will say that we are careful in terms of the operator that we bring in. We are not going to go for any coworking space operator, maybe a select one or few. We are likely to spread. One is -- I don't want to have coworking operators, 2 or 3 in one building. The other thing is I need to make my best. It's a booming industry or should I say, a sector in recent times for the singular market. How many can last? How many has the staying power? How many has the longevity? We have to take a bet. I think now is a matter of grabbing market share. Subsequently, I think they will -- there could potentially be a -- in my terms, a little bit of a shake-up because you are spreading too thin. And profitability is definitely an issue at this stage. But I don't think there is -- that the current state of affairs of where we are in a single market, we are not there yet. I think by the time we get there, there will be some shake-up. Definitely somebody will fall out, then the stronger ones will stay. And that's where -- means potentially their profit margin will be improved. I think similar -- it's similar for any -- like in fashion. Normally, first key base. Oh, everybody wants to come in. And when everybody has already made money, some would come off. So I'm very -- we are very selective. We have been pursued, we are careful, but yes, they do pay me very -- they offer me very decent market rent. So we just have to weigh the pros and cons before we sign them on, yes. But generally, very professional people for those that we have been dealing with, yes.
Any further questions, yes? Yes?
[indiscernible] was the one that [indiscernible] seeing right now, yes.
So, in total, when we look at it, the 40% reversion for Basement 1 and Level 1, all in, they -- the covered space. So the UNIQLO will expand from about 10,000 to about 19,000, 10-over thousand to 19-over thousand. If you notice, it's actually -- oh, it didn't show here. It's actually quite a smart way of us using our frontage. We gave them a lot more on the back where we can retrieve and kept some of the front to introduce another tenancy. So overall, in terms of numbers, 40% -- over 40%. And that piece is calculated together by everybody, yes.
But I'm curious you need to split it up for existing -- yes, existing space of...
Other [indiscernible] for you in your numbers.
No, we just want to see how, is it justifiable for you...
Confirmed, justifiable, no need to think because I -- if I just shake the area that I've gave him, the frontage, yes, I can't even give to anybody. Maybe -- let me point to you. It's very hard to see. Let me see. Let me show you here. Okay, this is actually a slot into 2 lots. What we did was we did -- we marginally increased his frontage, his front, but we give him the back, okay? So if you really want to look at whether we were smart in doing it, I confirm. Job's been confirmed, that is a very smart move. Numbers-wise, it's already telling. And if I really want to see whether they're paying better, okay, I'm giving them a lot of back-end space, limited increase in frontage. I'm very happy with overall results, because if I don't have them to take it up, I will never get this kind of rent.
Just to follow up from that, how do you think their performance has been? I mean…
They're okay. They have -- for these recent times, they are looking at going bigger. Quite clearly, they were -- they have a target number of about 20,000 square feet, 20,000 square feet is just -- they want to grow bigger and more ideal, so that they can widen it and have it a little bit more complete. So we were one of the few that is going to go on that format. We still have this relevance in the market, this is in the simplicity, more fast basic session. So I think he still has a staying power in terms of unit growth. And for me, when we look at the space, what we retrieve was actually quite a bit of frontage. Remember, last time, we had UNIQLO, then we had Cold Storage walk away, then the Guardian. We actually took the entire frontage of Cold Storage back. We managed to split a little bit and gave another unit the frontage, just so that we can have expanded unit growth plus one more tenant on Level 1. So I think that's the -- fairly nicely done.
Okay. Just back on MBC I, I'm just wondering, what is the key rents or the business top component now and the rents for -- asking rents for Mapletree Anson at this point in time?
Asking for MBC business partners, it's a -- for largest reasons, they are looking at across $6, right? Then for Mapletree Anson, they're on a final space, most of them they're asking above $9.
I think a good -- always remember that -- roughly the number $6, $9 thereabout, between $15, $16. I think that gives you a sense of our entire portfolio, yes.
Yes?
Any final questions?
Okay. Well, it's now -- we'd like to thank you, everyone, for the time again. Apologies again for the delay earlier. Thank you again. That marks the end of our briefing for our fourth quarter and full year results. Thank you.