Mapletree Pan Asia Commercial Trust’s H1 DPU rises by 12.5%

Janice Lim
Published Fri, Oct 28, 2022 · 12:42 AM

MAPLETREE Pan Asia Commercial Trust : N2IU 0% (MPACT) posted a distribution per unit (DPU) of 4.94 Singapore cents in the first half of its fiscal year ending Sep 30, a 12.5 per cent increase from the 4.39 cents recorded for the same period last year.

The increase in DPU was driven by contribution from properties under Mapletree North Asia Commercial Trust, which Mapletree Commercial Trust acquired through a merger.

Contributions from its core assets, which include shopping mall VivoCity and integrated development Mapletree Business City, also drove MPACT’s performance, said its manager, which released the new entity’s first set of combined earnings in a bourse filing on Thursday (Oct 27).

The DPU comprises a clean-up distribution of 3.04 cents per unit by Mapletree Commercial Trust from Apr 1 to Jul 20 this year, which has already been paid, as well as 1.9 cents in DPU from Jul 21 to Sep 30, due at the end of the year.

Net property income for the first half went up 44.9 per cent to S$275.2 million in the first six months of its fiscal year, from S$189.9 million over a year ago.

Gross revenue rose by the same percentage, coming in at S$353.2 million from S$243.7 million.

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Sharon Lim, chief executive officer of the newly merged entity, said that 63 per cent of its gross revenue and net property income were derived from Vivocity and Mapletree Business City.

The trust achieved a committed occupancy rate of 96.9 per cent across its portfolio, which has assets under management (AUM) of about S$16.9 billion.

Over the fiscal half-year, MPACT renewed or re-let a total of 1.1 million square feet of net lettable area, with a positive rental reversion of 1.1 per cent on average. The weighted average lease expiry is 2.4 years.

As a result of the merger, MPACT’s total assets grew to S$17.2 billion from S$9.0 billion in March. The net asset value per unit rose as well, by 4.0 per cent to S$1.81.

Its outstanding debt stood at around S$7 billion as at Sep 30, working out to an aggregate leverage ratio of about 40.1 per cent.

To mitigate uncertainties arising from interest-rate and foreign-exchange volatilities, about 72.5 per cent of the total gross debt had been fixed through fixed-rate debt or interest rate swaps, and 88 per cent of MPACT’s distributable income (based on rolling four quarters) was derived or hedged in the Singapore dollar. 

MPACT’s manager said that the debt maturity profile remains well-distributed, with no more than 22 per cent of debt due in any financial year. The debt profile by currency also largely mirrors the geographical composition of MPACT’s AUM, providing a natural hedge for the balance sheet, it said.

Lim said: “The global economic environment has deteriorated due to prolonged political conflicts, rising energy prices and interest rates. In navigating the volatilities, we will press on with our proactive asset-management approach. We will also focus on safeguarding the balance sheet, and seize suitable opportunities to achieve a balance of risks and costs.”

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