In a separate filing, MPACT announced that DBS bought 600,000 units for $726,000.

Mapletree Pan Asia Commercial Trust (MPACT) has declared a distribution per unit (DPU) of 2.00 cents for the 3QFY2025 ended Dec 31, 2024, a 9.1% y-o-y decrease. For the 9MFY2025, DPU similarly fell 8.3% y-o-y to 6.07 cents.

Gross revenue in the quarter dropped 7.4% y-o-y to $223.7 million, while net property income (NPI) similarly shrunk 8.5% y-o-y to $166.9 million. This primarily stemmed from the absence of Mapletree Anson’s contribution following its divestment on Jul 31, 2024, and lower overseas contributions which were further dampened by the continued strength of the Singapore dollar. 

For the 9MFY2025, gross revenue and NPI also fell 4.6% y-o-y and 5.7% y-o-y to $685.9 million and $514.0 million respectively, due to reduced contribution following Mapletree Anson’s divestment, overseas headwinds and adverse foreign exchange (forex) effects. 

Consequently, the amount distributable to shareholders in the 3QFY2025 fell 9.2% y-o-y to $104.7 million, while this amount stood at $319.4 million for the 9MFY2025, a 8.2% y-o-y decrease.

As at Dec 31, 2024, cash and cash equivalents stood at $142.7 million.

Meanwhile, the REIT’s balance sheet has remained stable, with a healthy aggregate leverage ratio of 38.2% as at end-2024. The weighted average all-in cost of debt improved to 3.52% per annum from 3.56% per annum a quarter ago, while the adjusted interest coverage ratio stood at around 2.8 times on a 12-month trailing basis. 

MPACT’s debt profile has also remained balanced with no single financial year facing more than 23% of debt refinancing. The manager continued to ensure a natural balance sheet hedge by closely aligning debt mix with the geographical distribution of the REIT’s assets under management where feasible. 

To mitigate interest rate and forex volatilities, around 81.5% of the total gross debt was either in fixed-rate debts or fixed through interest rate swaps, while about 91% of MPACT’s distributable income was either generated in or hedged into the Singapore dollar. 

As at Dec 31, 2024, MPACT has around $900 million in cash and undrawn committed facilities, providing financial liquidity to meet working capital needs and financial obligations. 

In the 9MFY2025, the REIT renewed and re-let more than 1.5 million square feet of lettable area. Of this, approximately 1.3 million square feet were from leases with expiries in the period, achieving a 4.6% rental uplift on an aggregate basis. 

The Singapore portfolio demonstrated notable strength, with rental reversions ranging from 2.0% at Mapletree Business City to 16.9% at VivoCity. As at Dec 31, 2024, the portfolio was 90.0% committed. After the reporting period, a significant lease was concluded at The Pinnacle Gangnam. 

Consequently, all markets except China achieved higher committed occupancies. The portfolio’s weighted average lease expiry (WALE) was 2.2 years, with 2.1 years for the retail segment and 2.3 years for the office/business park segment.

MPACT’s retail assets demonstrated continued adaptability amid dynamic market conditions. At VivoCity, the strategic basement 2 enhancement is progressing smoothly, with phase 2 retail expansion works having commenced in December 2024.

Expected to complete by end-2025, the REIT notes that the entire initiative is projected to deliver over 10% return on investment. While the ongoing works have temporarily impacted mall activities, tenant sales grew 14.4% on a quarterly basis, outpacing the market. 

Sharon Lim, CEO of the manager says: “Our proactive management approach continues to yield positive outcomes, as demonstrated by Singapore’s steady performance and the full-quarter benefit of Mapletree Anson’s divestment. The accretive divestment has generated interest cost savings through strategic debt reduction while strengthening our balance sheet position.”

“As we enter 2025, we anticipate continued headwinds overseas. We are exploring all measures to address market-specific issues. While navigating near-term obstacles, MPACT’s core stability remains anchored by Singapore’s dominant position in the portfolio. We will persist in our pursuit to deliver sustainable value to our unitholders,” adds Lim.

In a separate filing, MPACT announced that DBS Bank acquired 600,000 units in the REIT via the market for $726,000 or $1.21 per unit.

Following the transaction, DBS now holds a 0.9948% stake in MPACT.

Units in Mapletree Pan Asia Commercial Trust N2iu closed 1 cent lower or 0.85% down at $1.19 on Jan 23.