Mapletree Pan Asia Commercial Trust - Clear Signs Of Recovery

Mapletree Pan Asia Commercial Trust - OCBC Investment 2023-05-02: Clear Signs Of Recovery

Mapletree Pan Asia Commercial Trust - Clear Signs Of Recovery

Mapletree Pan Asia Commercial Trust (SGX:N2IU)

Mapletree Pan Asia Commercial Trust (SGX:N2IU)’s 4QFY23 (Jan to Mar 2023) results fell slightly short of our expectations. Gross revenue and net property income (NPI) surged 85.9% and 82.2% y-o-y to S$233.3m and S$177.4m, respectively. This was driven by a full quarter contribution from properties acquired through the merger and improved performance from all its Singapore properties.
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For FY23, Mapletree Pan Asia Commercial Trust’s NPI jumped 62.6% y-o-y to S$631.9m, while DPU was up 0.8% to S$0.0961 (or +6.1% excluding the release of retained income in FY22) and constituted 97.9% of our forecast.

Portfolio committed occupancy stable at 95.4%; rental reversions of +0.7% driven by assets outside of Greater China

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On the rental front, overall FY23 portfolio rental reversions came in at +0.7% (9MFY23: -0.3%), with all markets registering rental uplifts except for Greater China. Festival Walk’s rental reversions stood at -12.7%, but the magnitude of decline has narrowed as compared to FY22 (-27%) and FY21 (-21%). Management pointed out that there was still ~15% of leases at the mall which were signed before the pandemic, and hence renewal of these leases in FY24 would still result in negative rental reversions.
Tenants’ sales recovered firmly for both Festival Walk and VivoCity, at +65.6% and +10.2% y-o-y, respectively, for 4QFY23, and +9.3% and +30.6% for FY23, respectively.

Portfolio valuation declined due largely to FX and Greater China properties

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Above is the excerpt from report by OCBC Investment Research.
Clients of OCBC Securities may be the first to access the full report in PDF @ https://www.iocbc.com/.