MPACT Q2 DPU falls 3.5% to S$0.0194 on weaker overseas contributions

[SINGAPORE] The manager of Mapletree Pan Asia Commercial Trust ( MPACT ) on Friday (Oct 30) posted a 3.5 per cent decline in distribution per unit (DPU) to S$0.0194 for its second quarter ended September, from S$0.0201 a year earlier.

This was mainly due to weaker contributions from its overseas properties, driven partly by the non-renewal of a lease at Fujitsu Makuhari Building in Japan, challenging market conditions in China and continued headwinds in Hong Kong, said the manager.

The absence of contributions from three divested assets – TS Ikebukuro Building, Abas Shin-Yokohama Building and the office component of Festival Walk – also weighed on MPACT’s earnings.

The decline was partially offset by lower finance expenses and stronger performance at VivoCity mall, following the completion of its Basement 2 asset enhancement initiative and sustained rental growth.

Revenue for Q2 fell 5 per cent to S$207.5 million from S$218.5 million in the year-ago period. Net property income (NPI) declined 6.3 per cent to S$153.5 million from S$163.9 million.

Distributable income for the recorded quarter fell 2.9 per cent to S$103.1 million, from S$106.2 million in the previous corresponding period.

The Q2 distribution will be paid on Dec 16, after the record date of Nov 10.

For the first-half ended September, MPACT’s DPU fell 3 per cent to S$0.039, from S$0.0402 a year earlier. Distributable income dropped 2.7 per cent to S$207.3 million from S$213 million.

Revenue was down 5.3 per cent year on year at S$413.9 million, while NPI dropped 6.5 per cent to S$308.3 million.

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Sharon Lim, CEO of MPACT’s manager, said: “Singapore, at 61 per cent of portfolio assets under management and 68 per cent of NPI, remains our cornerstone. VivoCity continues to underpin stability, and we see room for further optimisation.”

She added: “Meanwhile, key committed leases at Mapletree Business City (MBC) will commence progressively from Q3 FY2027 and add to rental income. In the overseas markets where conditions remain soft, our focus is on maintaining occupancy and cash-flow stability.”

MPACT’s portfolio committed occupancy improved to 85.6 per cent as at Sep 30, up from 84.4 per cent as at end-June. At MBC, committed occupancy rose to 95.4 per cent, with key committed leases expected to begin contributing rental income progressively from Q3.

Units of MPACT ended Thursday 0.9 per cent or S$0.01 lower at S$1.13.