The lower NPI growth was the result of higher operating expenses due to utilities. To this end, Guha notes that borrowing cost rose 64 basis points y-o-y to 3.17%, negating the steady operations. He adds that the guidance is for further rise as swaps reprice.
Maybank Securities analyst Krishna Guha has kept “buy” on Mapletree Pan Asia Commercial Trust (MPACT) (SGX:N2IU
) with a lower target price of $1.70 from $1.90 previously as borrowing costs are set to rise higher.
In his Aug 3 report, Guha notes that MPACT has had a slow start to the year. Excluding the merger with its sister REIT, the trust’s revenue and net property income (NPI) for 1QFY2024 ended June rose 4.1% and 0.3% y-o-y respectively.
