Mapletree Pan Asia Commercial Trust (N2IU) Q2 25/26 earnings summary

Executive summary

• Singapore's strength, portfolio optimization, and proactive debt reduction drove performance, with Singapore accounting for over 60% of gross revenue and NPI and two core assets contributing more than half of portfolio revenue.

• Overseas properties faced headwinds from lower occupancies, negative rental reversions, FX depreciation, and macroeconomic/geopolitical uncertainties.

• Divestments of Mapletree Anson, TS Ikebukuro, and ABAS Shin-Yokohama sharpened focus on core Singapore assets, with proceeds used for debt reduction.

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

Financial highlights

• Q2 distributable income was SGD 106.1 million, DPU SGD 0.0201 (up 2.1% and 1.5% year-on-year); 1H distributable income was SGD 213 million, DPU SGD 0.0402 (down 0.8% and 1.2% year-on-year).

• Q2 FY25/26 gross revenue was S$218.5 million (down 3.2% year-on-year); net property income was S$163.9 million (down 2.2%).

• Finance expenses fell 16.4% year-on-year in both Q2 and 1H FY25/26 due to lower interest rates and debt reduction.

• NAV per unit stood at S$1.75 as of 30 September 2025.

Outlook and guidance

• Singapore expected to remain the core market, with continued strength in VivoCity and stable performance in other assets.

• Overseas markets, especially China and Hong Kong, expected to remain challenging with weak rental reversions, lower margins, and policy/geopolitical risks.

• Portfolio mix unlikely to change significantly in the near term; focus on tenant retention and prudent cost management.