The manager of Mapletree Pan Asia Commercial Trust N2IU (MPACT) has reported a distribution per unit (DPU) of 2.29 cents for the 4QFY2023/2024 ended March 31, 1.8% higher y-o-y.
The quarter’s gross revenue rose by 2.6% y-o-y to $239.2 million while net property income (NPI) was up by 3.2% y-o-y at $183.1 million. The higher gross revenue and NPI were due to the performance of MPACT’s assets in Singapore and stable contribution from Festival Walk in Hong Kong, although it was diluted by adverse foreign currency (forex) movements.
Net finance costs for the 4QFY2023/2024 rose by 10.8% y-o-y to $56.4 million.
As a result, the quarter’s distributable income was up by 2.5% y-o-y to $120.5 million.
However, DPU for the FY2023/2024 fell by 7.3% y-o-y to 8.91 cents, due to higher interest rates.
Gross revenue for the full year rose by 16.0% y-o-y to $958.1 million while NPI rose by 15.2% y-o-y to $727.9 million. The growth was driven by the full-year contribution from MPACT’s overseas assets acquired through the merger but mitigated by a stronger Singapore dollar (SGD) against all the foreign currencies. The robust performance of the trust’s Singapore portfolio also more than covered the rise in utility costs during the year.
See also: IHH Healthcare’s 3QFY2024 patmi remains flat at RM534 mil
Distributable income rose by 5.2% y-o-y at $468.6 million as net finance costs surged by 39.0% y-o-y to $225.5 million.
As at March 31, MPACT’s portfolio occupancy stood at 96.1% while the portfolio’s weighted average lease expiry (WALE) stood at 2.4 years.
Assets under management (AUM) stood at $16.5 billion.
See also: Marco Polo Marine reports lower 2HFY2024 earnings of $10.7 mil, down 42% y-o-y
MPACT’s net asset value (NAV) per unit as at March 31 stood at $1.75.
As at the same period, the trust’s leverage stood at 40.5% with an adjusted interest coverage ratio of 2.9 times.
Cash and cash equivalents as at March 31 stood at $135.6 million.
“MPACT has maintained its course amidst a tough operating landscape. The uplift across gross revenue, NPI and DPU for 4QFY2023/2024 underscores our operational resilience and adaptability,” says Sharon Lim, CEO of the manager.
“Despite the bumpy road ahead, we draw confidence from several key indicators of stability: a yearly increase in our portfolio committed occupancy to 96.1% and a positive rental reversion of 2.9%. VivoCity, our flagship asset, has showcased all-rounded excellence, achieving a new record in full-year tenant sales and leading our portfolio with an outstanding 14.0% rental uplift,” she adds.
Looking ahead, Lim sees the trust as being “poised to seize strategic opportunities” to refine its capital structure, “emphasising a dynamic approach to portfolio management”.
“Additionally, we will continue to pursue initiatives aimed at safeguarding and enhancing long-term unitholder value. Our Singapore assets have consistently delivered. With this market’s inherent stability, it will remain a significant component of our AUM and NPI, reinforcing MPACT’s foundational strength,” she says.
MPACT's ex-date is on May 2, while its record date is on May 3. The DPUs will be paid to unitholders on June 6.
Units in MPACT closed at $1.25 on April 23.
