Mapletree Pan Asia Commercial Trust (MPACT) has reported a distribution per unit (DPU) of 4.42 cents for the 1HFY2023/2024 ended Sept 30, 10.5% lower y-o-y.
For the 2QFY2023/2024, MPACT reported a DPU of 2.24 cents, 8.2% lower y-o-y. However, its DPU rose q-o-q by 2.8%.
The DPU will be paid on Dec 8.
For the 1HFY2023/2024, MPACT reported gross revenue of $477.3 million, up by 35.1% y-o-y.
Property operating expenses during the six-month period increased by 47.4% y-o-y to $1.15 billion.
MPACT’s net property income (NPI) for the 1HFY2023/2024 increased by 31.7% y-o-y to $362.4 million.
See also: Trump wins Republican nomination, setting up rematch with Biden
The higher gross revenue and NPI for the quarter was on the back of better performance by its Singapore assets. Meanwhile, largely stable contributions from the overseas properties were weighed down by forex effects resulting from a stronger Singapore dollar.
MPACT says that higher interest rates exerted pressure on the DPU, leading to year-on-year declines for the second quarter and the first half.
MPACT says that its gross revenue, property operating expenses, NPI and net finance costs do not include contributions from The Pinnacle Gangnam. It will share profit after tax of The Pinnacle Gangnam based on its 50% effective interest.
MPACT’s NPI margin stood at 76.3% for this period.
It says that its increase in portfolio NPI was driven by Singapore’s robust performance, and full period contributions from the overseas properties acquired through the merger.
As at Sept 30, MPACT’s portfolio committed occupancy came in at 96.3%, with increased commitments recorded in the majority of markets. MPACT’s two retail assets, VivoCity and Festival Walk, are close to full commitment.
The tenant retention rate for the portfolio was 75.2%, and weighted average lease expiry (WALE) was 2.2 years for retail and 2.8 years for office/business park segments, resulting to an overall portfolio WALE of 2.5 years
During 1HFY2023/2024, MPACT renewed and re-let over 1.3 million square feet of lettable area, yielding a 3.2% portfolio rental uplift. Its core assets, VivoCity and Mapletree Business City, saw rental uplifts of 14.2% and 7.1%, respectively.
As at Sept 30, the fixed rate debt of MPACT rose to 79.9%. Its aggregate leverage ratio stood at 40.7%, with an average term to maturity of three years.
For this period, its weighted average all-in cost of debt was 3.34% per annum, and the adjusted interest coverage ratio was approximately three times on a 12-month trailing basis.
For more stories about where money flows, click here for Capital Section
As at Sept 30, MPACT has $1.1 billion in cash and undrawn committed facilities.
Sharon Lim, CEO of MPACT says that the gain in gross revenue, NPI and DPU q-o-q was achieved despite sustained pressure from higher utility expenses, adverse forex movements and elevated interest rates.
“While external factors like currency fluctuations and higher interest rates will persist in shaping the broader landscape, our focus remains on nimble asset and capital management,” says Lim. “We will continue to keep our fingers on the market’s pulse and stay agile, ensuring that we are well-positioned to navigate challenges and capitalize on opportunities as they arise.”
Units in MPACT closed flat at $1.30 on Oct 26.
