Mapletree Pan Asia Commercial Trust - CGS-CIMB Research 2022-10-31: Recovering Well In 1HFY23

Mapletree Pan Asia Commercial Trust - Recovering Well In 1HFY23

MAPLETREE PANASIA COM TRUST (SGX:N2IU) | SGinvestors.ioMAPLETREE PANASIA COM TRUST (SGX:N2IU)
  • In its maiden post-merger results, Mapletree Pan Asia Commercial Trust (SGX:N2IU) reported a 44.9% jump in 1HFY23 (Apr to Sep 2022) gross revenue to S$353.2m with contributions from properties acquired through the merger and higher contribution from VivoCity and MBC. Distribution income grew 37.2% due to higher finance costs as gearing increased to 40.1% post merger. Mapletree Pan Asia Commercial Trust's 1H DPU rose 12.5% to S$0.0494 following the issue of new units from the merger exercise. See Mapletree Pan Asia Commercial Trust's announcement dated 27 Oct 2022.
  • Interest cost as at end-1HFY23 stood at 2.44%. 21% of Mapletree Pan Asia Commercial Trust’s total debt is to be refinanced in 2HFY23-24F. Every 50bp hike in funding cost could impact Mapletree Pan Asia Commercial Trust's DPU by S$0.0016.
  • Portfolio committed occupancy dipped q-o-q to 96.9%, dragged by lower China property take-up as leasing conditions at Gateway Plaza (GWP) remain challenging. That said, Mapletree Pan Asia Commercial Trust managed to de-risk its portfolio with the renewal of the BMW (GWP), ARUP (Festival Walk) and Merrill Lynch Global Services Pte Ltd (BOA Harbourfront) leases.
  • Mapletree Pan Asia Commercial Trust achieved an average +1.1% rental reversion during the period, with VivoCity, MBC and The Pinnacle Gangnam achieving 7.7%, 3.8% and 14.2% positive reversions, respectively, while Festival Walk (FW) again saw negative rental reversion of -11.5%.
  • In terms of performance, VivoCity reported a 48.4% jump in tenant sales in 1HFY23 and exceeded pre-COVID-19 levels. VivoCity plans to undergo an 80k sq ft asset enhancement to convert part of L1 anchor space into a new retail zone with new F&B and lifestyle offerings. The bulk of the space is pre-committed and progressive opening is expected from mid-2023. This exercise is expected to deliver stabilised ROI of > 10%.
  • Meanwhile, FW’s tenant sales declined 0.5% y-o-y and remained about 20% below the levels pre-social incident in Hong Kong SAR and pre-COVID-19. Mapletree Pan Asia Commercial Trust continues to strengthen FW’s appeal as a lifestyle hub by introducing new F&B concepts and popular lifestyle brands.
  • We retain our FY23-25F DPU estimates for Mapletree Pan Asia Commercial Trust. Our DDM-based target price for Mapletree Pan Asia Commercial Trust is lowered to S$1.98 as we lift our cost of equity assumption to 7.29% (from 6.98%) for higher blended risk-free rate assumptions.




Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.




LOCK Mun Yee CGS-CIMB Research | Natalie ONG CGS-CIMB Research | https://www.cgs-cimb.com 2022-10-31



Previous report by CGS-CIMB:
2022-09-30 Mapletree Pan Asia Commercial Trust - Growing Pains Alleviated.

Price targets by other brokers at Mapletree Pan Asia Commercial Trust Target Prices.
Listing of research reports at Mapletree Pan Asia Commercial Trust Analyst Reports.

Relevant links:
Mapletree Pan Asia Commercial Trust Share Price History,
Mapletree Pan Asia Commercial Trust Announcements,
Mapletree Pan Asia Commercial Trust Dividends & Corporate Actions,
Mapletree Pan Asia Commercial Trust News Articles















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