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

Executive summary

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

• Singapore portfolio showed resilience, with steady performance and positive rental reversions offsetting overseas market weakness and the impact of Mapletree Anson's divestment.

• Aggregate leverage reduced to 38.4% after Mapletree Anson divestment, with portfolio committed occupancy at 90.3%.

• Divestment of Mapletree Anson completed on 31 July 2024 for S$775 million, proceeds used to reduce debt and strengthen the balance sheet.

• Distribution policy remains at a minimum of 90% of taxable and tax-exempt income.

Financial highlights

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

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

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

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

• Singapore's comparable gross revenue up 1.9% YoY for 1H FY24/25, led by VivoCity.

Outlook and guidance

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

• Management expects continued resilience from Singapore assets, while remaining cautious on overseas markets, especially Japan and China, prioritizing occupancy over rental growth.

• Market uncertainties persist due to geopolitical and economic factors, interest rates, and new supply in key markets.

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

• Manager remains focused on occupancy, rental income, cost management, and asset enhancement initiatives.