Mapletree Pan Asia Commercial Trust - DBS Research 2023-10-27: Anchored By Strong Singapore

• Mapletree Pan Asia Commercial Trust (SGX:N2IU)’s 1HFY24 DPU fell 11% y-o-y to 4.42 cents post the merger which completed in Jul22, in line with our estimates. On q-o-q basis, 2QFY24 DPU grew 3% to 2.24 cents led by higher revenue (+1% q-o-q) and NPI (+2% q-o-q).

Singapore assets growing strong while overseas assets are stable

• - Read this at SGinvestors.io -
• Gearing was stable at 40.7% but average cost of debt rose to 3.34% vs 3.17% in 1QFY24, within expectations.

Small interest savings from swapping HKD loan into CNH.

• During the quarter, management optimized its debt mix by swapping a portion of HKD loans into CNH (~S$440m) to
  1. - Read this at SGinvestors.io -
  2. raise its hedged ratio to 79.9% vs 74.2%;
  3. benefit from interest rates savings of ~2%.
• Management may do more of such swaps if market rates are favourable.

Portfolio occupancy inched up with VivoCity and Festival Walk almost at full occupancy;

• Mapletree Pan Asia Commercial Trust's portfolio occupancy inched up by 0.6ppt to 96.3%. All assets saw better occupancy except Korea. Both VivoCity and Festival Walk saw almost 100% occupancy.
• Backfilled ~35% to 40% of Unilever’s space and in discussions with prospective tenants for another 45% to 50% of the space.

Google likely to renew lease expiring in May24 but returning some space.

• Read more at SGinvestors.io.

Rachel TAN DBS Group Research | Derek TAN DBS Research | https://www.dbs.com/insightsdirect/ 2023-10-27 SGinvestors.io

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