MPACT struggles with leasing demand, cost of debt as Q4 DPU tumbles 14.8%

[SINGAPORE] The manager of Mapletree Pan Asia Commercial Trust (MPACT) on Friday (Apr 25) warned of ongoing challenges – including slow leasing demand and higher-for-longer cost of debt – as distribution per unit (DPU) for the fourth quarter ended March slid 14.8 per cent year on year to S$0.0195, from S$0.0229.

“Decision-making has slowed down quite a lot, and tenants tend to be more cost conscious,” said Koh Wee Leong, head of investments and asset management at MPACT’s manager, at a briefing accompanying the real estate investment trust’s (Reit) results announcement.

MPACT’s committed portfolio occupancy rate fell to 89.6 per cent as at end March, from 96.1 per cent in the year-ago period.