Mapletree Pan Asia Commercial Trust (N2IU) Q4 25/26 earnings summary

Executive summary

• Portfolio reshaped for resilience with three non-core asset divestments, including Festival Walk Tower, increasing Singapore's weighting to 61% of AUM and 66% of NPI, and proceeds used for debt reduction.

• Singapore operations delivered strong growth, especially at VivoCity, offsetting overseas headwinds and currency impacts.

• Distributable income and DPU for FY25/26 were S$421.4 million and 7.97 cents, both impacted by a one-off S$8.3 million tax charge from Festival Walk Tower divestment; adjusted DPU would have been 1.1% higher year-on-year.

• Disciplined capital management, sustainability initiatives, and prudent hedging underpin stability and future growth.

• Portfolio committed occupancy improved to 89.4% as of 31 March 2026.

Financial highlights

• FY25/26 gross revenue was S$867.3 million (down 4.6% year-on-year), and NPI was S$654.4 million (down 4.3% year-on-year), mainly due to lower overseas contributions and currency effects.

• Finance expenses fell 15.3% year-on-year to S$186.8 million, reflecting lower interest rates and reduced debt.

• NAV per unit was S$1.73 as at 31 March 2026, reflecting lower portfolio valuation and stronger SGD.

• Aggregate leverage ratio improved to 36.5%; weighted average cost of debt declined to 3.16%.

• Total return to unitholders in FY25/26 was 12%.

Outlook and guidance

• Portfolio positioned to weather macroeconomic and geopolitical uncertainties, with Singapore as the anchor market and continued focus on quality assets and prudent capital deployment.

• Interest rate guidance for FY27 is above 3%, with expectations for a low 3% range.

• Negative rental reversions expected to persist in China and Festival Walk, with China facing at least 10% negative reversion.

• No immediate plans for major acquisitions; focus remains on cautious overseas expansion and maintaining strong Singapore base.

• AEI at Festival Walk cinema targeted for 2027; ongoing tenant remixing and operational improvements at key assets.