MAPLETREE Pan Asia Commercial Trust (MPACT) reported a 12.8 per cent dip in its distribution per unit (DPU) to S$0.0218 for its first quarter ended Jun 30 on the back of higher interest rates, utility costs and a stronger Singapore dollar.

Sharon Lim, chief executive officer of the manager, said: “Because of the stronger Singapore dollar, contributions from the overseas properties were also impacted by foreign exchange effects when translated into Singapore dollars.”

Revenue for the quarter grew 75.6 per cent to S$237.1 million from S$135 million from the year before. The increase was driven by contributions from the properties acquired from the merger of Mapletree Commercial Trust and Mapletree North Asia Commercial Trust, as well as higher contributions from its Singapore properties.

Net property income rose 68 per cent to S$179.2 million in Q1 FY23/24 from S$106.7 million the year-ago quarter. This was mainly driven by contribution from properties acquired through the merger and better performance from the Singapore portfolio.

The higher revenue from Singapore properties was offset by higher utility costs.

All markets except that of Greater China recorded positive rental uplift, resulting in a portfolio rental reversion of 2.4 per cent. Singapore, in particular, achieved rental uplifts ranging from 7.1 per cent at Mapletree Business City to 12.3 per cent at VivoCity.

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Portfolio committed occupancy stood at 95.7 per cent as of Jun 30, with tenant retention rate at 79.1 per cent. The overall weighted average lease expiry for MPACT is 2.6 years.

MPACT says that it is reasonably positioned in the face of the downturns in the tech and finance sectors. The main focus would be on maintaining a healthy portfolio occupancy and steady rental income, while managing costs.

“We will maintain our agility and proactive approach in driving our assets, while effectively adapting to market changes. Preserving the stability of our balance sheet remains a top priority for us,” said Lim.

Units of MPACT closed down 1.8 per cent or S$0.03 to S$1.65 on Monday.