Mapletree Pan Asia Commercial Trust - CGS-CIMB Research 2024-01-29: Better Operationally; FX, Interest Costs Bite

• Mapletree Pan Asia Commercial Trust (SGX:N2IU)’s portfolio occupancy inched up q-o-q to 96.7% in 3QFY24 (2QFY24: 96.3%), reflecting higher occupancies across all assets, except VivoCity (-0.3% pt q-o-q).

Rental reversions: China properties and Festival Walk not as bad

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• Healthy 9MFY24 reversions were seen at Mapletree Business City (MBC, +6.7%), the Singapore office portfolio (+7.3%) and Pinnacle Gangnam (+39.9%), although slightly weaker versus 1HFY24 reversion numbers, weighed down by slightly weaker reversion on leases signed in 3QFY24.
• 3QFY24 reversions at VivoCity were stable q-o-q at +14.2%.

Explained: Negative tenant sales growth at VivoCity & Festival Walk

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• Management explained that the lower tenant sales were due to the absence of sales from tenants undergoing renovations at VivoCity, as well as higher outbound travel. The commencement of trading of these tenants and the return of tourists could restore the positive sales growth trend, in our view.

9MFY24 DPU (-10% y-o-y) in line, at 76.8% of our FY3/24F

• Read more at SGinvestors.io.

Natalie ONG CGS-CIMB Research | LOCK Mun Yee CGS-CIMB Research | https://www.cgs-cimb.com 2024-02-05 SGinvestors.io

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