Mapletree Pan Asia Commercial Trust (N2IU) Q2 24/25 earnings summary

Executive summary

• Singapore portfolio delivered higher comparable gross revenue and NPI, led by VivoCity, offsetting overseas market weakness and the impact of Mapletree Anson's divestment.

• Overseas assets, especially in Japan and China, faced headwinds from lower occupancy, negative rental reversions, and adverse FX movements.

• Divestment of Mapletree Anson completed for S$775 million, strengthening the balance sheet and reducing leverage.

• Portfolio resilience supported by positive rental reversions, proactive asset management, and ongoing AEI at VivoCity and Festival Walk.

• Total assets under management stood at S$15.5 billion across 17 properties in five Asian markets as of 30 September 2024.

Financial highlights

• 2Q FY24/25 gross revenue: S$225.6 million (-6.1% YoY); NPI: S$167.7 million (-8.5% YoY); DPU: 1.98 cents (-11.6% YoY).

• 1H FY24/25 gross revenue: S$462.3 million (-3.1% YoY); NPI: S$347.1 million (-4.2% YoY); DPU: 4.07 cents (-7.9% YoY).

• Amount available for distribution: S$104.0 million (-11.9% YoY).

• Net finance expenses for 2Q fell 2.6% YoY due to debt repayment from divestment proceeds.

• Net loss after tax for 2Q FY24/25 was S$9.1 million, mainly due to fair value losses on investment properties.

Outlook and guidance

• Singapore remains a stable anchor, accounting for over 50% of portfolio AUM and NPI, with ongoing AEI at VivoCity to enhance long-term value.

• Management remains cautious on overseas markets, especially Japan and China, prioritizing occupancy and cost management.

• Market uncertainties persist due to geopolitical and economic factors, but recent rate cuts and China's stimulus may support sentiment.

• No plans for DPU top-ups or aggressive acquisitions; focus remains on operational performance and prudent capital management.

• Strategic review underway for Makuhari properties in Japan due to tenant non-renewal and market softness.