MPACT reports 2.5% lower Q1 DPU of S$0.0196 amid overseas headwinds

[SINGAPORE] Mapletree Pan Asia Commercial Trust’s (MPACT) distribution per unit (DPU) fell by 2.5 per cent to S$0.0196 for its first quarter ended Jun 30, from S$0.0201 in the previous corresponding period.

Revenue was down 5.6 per cent at S$206.5 million for the quarter, from S$218.6 million in the year-ago period, the manager reported on Thursday (Jul 30).

This was mainly due to lower contributions from overseas properties, and the absence of revenue following the divestment of Festival Walk Tower, TS Ikebukuro Building and Abas Shin-Yokohama Building.

It was also attributed to foreign exchange headwinds from a weaker Japanese yen and Hong Kong dollar against the Singapore dollar.

The drop was partially cushioned by higher contributions from its Singapore assets, led by VivoCity’s strong post-asset enhancement initiative performance and sustained rental growth.

Net property income fell 6.8 per cent on the year to S$154.8 million for the quarter, from S$166 million.

Distributable income declined 2.4 per cent year on year to S$104.2 million, from S$106.8 million.

The distribution will be paid out on Sep 16.

Sharon Lim, chief executive officer of the manager, said: “The macro environment remained challenging, and we do not expect this to ease (in the) near term.”

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She added: “VivoCity’s strength, together with interest cost savings from disciplined capital management, helped cushion the impact of overseas softness, and should keep doing (so) through the year.”

During the quarter, overall committed portfolio occupancy stood at 84.4 per cent as at Jun 30, with a weighted average lease expiry of 2.3 years.

The portfolio achieved a positive rental reversion of 4.3 per cent, led by VivoCity – which recorded a 13.5 per cent rental uplift alongside NPI growth of 8.9 per cent.

Units of MPACT closed flat at S$1.36 on Thursday before the results were released.