Mapletree Pan Asia Commercial Trust (MPACT) has reported a distribution per unit (DPU) of 1.98 cents for 2QFY2025 ended September, down 11.6% y-o-y.
This came on the back of the REIT’s divestment of Mapletree Anson, which support MPACT’s financial performance. Additionally, the REIT manager reduced borrowings due to higher interest rates.
As a result, higher interest rate were offset, which reduced net finance costs for the quarter.
Meanwhile, gross revenue for 2QFY2025 fell by 6.1% y-o-y to $225.6 million, while net property income stood at $167.7 million, down by 8.5% y-o-y.
This came on the back of lower contributions following Mapletree Anson’s divestment, and lower contributions from overseas assets, which were further impacted by the strengthening Singapore dollar.
That said, revenue from the REIT’s SIngapore assets rose by 0.7% y-o-y due to strong performances from Vivocity.
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As at Sept 30, the REIT’s portfolio occupancy stood at 90.3%, while weighted average lease expiry (WALE) was 2.3 years.
For the same period, assets under management (AUM) stood at $15.5 billion across 17 commercial properties in five Asian markets.
Additionally, the REIT’s aggregate leverage stood at 38.4% with an adjusted interest coverage ratio of 2.8 times.
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Sharon Lim, CEO of the manager, says: “While our Singapore portfolio continues to demonstrate resilience, we remain vigilant in addressing overseas challenges. We are exploring all avenues to mitigate headwinds, particularly in the Makuhari submarket of Chiba, Japan. Concurrently, we are focused on active asset management across our portfolio, including the ongoing enhancements at Basement 2 of VivoCity to future-proof it. The mall continues to be on track for long-term success.”
She adds: “In Greater China, near-term challenges persist, but the recent rate cut by the Fed and China’s economic stimulus measures are positive steps for overall market sentiment. As we navigate the complex landscape, the Singapore portfolio, which forms the majority of MPACT’s portfolio, continues to be our anchor of stability.”
Unitholders are expected to receive distributions on Dec 6.
Units in MPACT closed 1 cent lower, or down 0.7%, at $$1.41 on Oct 24.
