- Mapletree Pan Asia Commercial Trust (SGX:N2IU) had a slow start to the year as 1QFY24 DPU fell 3.1% q-o-q and 12.8% y-o-y to S$0.0218. Contributions from assets acquired through the merger was more than offset by lower margins, higher borrowing cost, weaker FX and a larger base of units.
- - Read this at SGinvestors.io -
- With borrowing costs set to rise higher, we revise down estimates and cut our DDM-based target price for Mapletree Pan Asia Commercial Trust to S$1.70. However, we maintain BUY rating on reasonable valuation (5.7% yield, 0.9x P/B).
Borrowing cost negates steady operations
- Mapletree Pan Asia Commercial Trust's revenue and NPI for 1Q rose 75.6% and 68% y-o-y. On a q-o-q basis, comparable figures were 1.6% and 1.0%, respectively. The y-o-y growth was mainly due to merger with sister REIT and better performance of Singapore assets. Excluding the merger, 1Q revenue and NPI grew 4.1% and 0.3% y-o-y. The lower NPI growth was the result of higher operating expense due to utilities.
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- Coupled with depreciation of CNY and JPY against S$ and a larger base of units, 1QFY24 DPU fell 3.1% q-o-q/12.8% y-o-y.
Core Singapore assets steady, weak overseas
- Read more at SGinvestors.io.
