Mapletree Pan Asia Commercial Trust (MPACT) has reported a distribution per unit (DPU) of 2.09 cents for the 1QFY2025 ended June 30, 4.1% lower y-o-y. Unitholders will receive their DPUs on Sept 12.
Distributable income fell by 3.5% y-o-y to $110.8 million due to higher finance costs, which rose by 9.8% y-o-y to $59.4 million.
Gross revenue dipped by 0.2% y-o-y to $236.7 million due to lower contributions from MPACT’s overseas properties due to weaker performances from China and Japan. The weaker performances were due to lower occupancy and unfavourable foreign exchange (forex) arising from the depreciating Japanese yen (JPY) and Chinese renminbi (RMB) against the Singapore dollar (SGD).
The lower contributions were slightly mitigated by higher contribution from the REIT’s Singapore properties, which saw growth from fixed rent, car park income and advertising and promotion income.
Net property income (NPI) inched up by 0.1% y-o-y to $179.4 million as property operating expenses fell by 1.1% y-o-y to $57.3 million.
As at June 30, the portfolio’s committed occupancy stood at 94.0% with a positive rental reversion of 5.2%. Tenant sales and shopper traffic for MPACT’s two retail properties, VivoCity and Festival Walk in Hong Kong, however, fell y-o-y.
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“Despite the broad market headwinds during the quarter, we remain confident in MPACT’s ability to maintain a steady trajectory. Our Singapore assets have effectively buffered against foreign exchange fluctuations and softness in certain overseas markets. The portfolio’s resilience, underpinned by healthy committed occupancy and positive rental reversion, particularly in Singapore, reinforces our ability to navigate through market cycles,” says Sharon Lim, CEO of the manager.
Looking ahead, the REIT manager is implementing “strategic initiatives” to drive its future performance. This includes the “major upgrading” of VivoCity’s Basement 2, which will be conducted in two key phases.
The proposed divestment of Mapletree Anson, a non-core asset, will also bolster the REIT manager’s financial position and strategic agility, Lim adds.
Units in MPACT closed flat at $1.29 on July 30.
