Macau Property Opportunities has published results for the year ended 30 June 2015. The adjusted NAV per share fell by 18.7% over the year as the portfolio value fell by 14% to $463.7m. The discount widened from 11% to 17% over the year and has widened further since – to 39% today. Assuming a full drawdown of committed loan facilities and based on the MPO’s portfolio value as at 30 June 2015, the loan-to-value (LTV) ratio is now 34%, up from 22% a year before. Overall debt stood at $166.8m.
The main problem has been weaker gambling revenue in Macau as the Chinese authorities clamped down on corruption.
Within the portfolio, The Waterside (luxury residential) saw its occupancy level drop to 43.9% on the back of pressures on the luxury property sector partly due to falling VIP gaming growth. Rental rates also registered a decline but nonetheless remain at a distinct market premium. The average monthly rental rates fell 6% year-on-year to HK$23.50 (US$3.04) per square foot. At The Fountainside (low-density residential) handover of 24 of 27 pre-sold units at the 42-unit development has been completed. Total income generated from sales as of 30 June 2015, including five car parks, amounts to HK$216.4m (US$27.9m). Renovation and consolidation works at Estrada da Penha (luxury private home) were completed in September, resulting in a single c.12,000 square feet residence in the exclusive Penha Hill neighbourhood. At Senado Square (prime retail), despite a continued setback in the development timetable due to delayed government approvals, they are optimistic that construction will commence before the end of 2016 upon the receipt of all required documents.
MPO : Macau Property Opportunities hit hard by gambling slowdown