Mapletree Pan Asia Commercial Trust - Maybank Research 2024-08-05: Driving Resilience; 1QFY25 In Line

• Mapletree Pan Asia Commercial Trust (SGX:N2IU)’s 1Q25 DPU of S$2.09 cents fell 8.7% q-o-q and -4.1% y-o-y, in line with our est. Forex headwinds and pockets of weakness in overseas markets offset growing contribution from Singapore assets.
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• As the divestment of Anson is close to completion, gearing will be reduced to ~37.6% (from 40.5%) on a pro-forma basis. Mapletree Pan Asia Commercial Trust could benefit from lower interest rates due to its floating rate exposure.

Stable fundamentals of Singapore portfolio

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• Management announced an AEI at VivoCity, with a 10% target ROI and estimated capex of S$42m.
• Performance at MBC was largely stable with positive reversions (+2.3%), notwithstanding a slower leasing market and rising competition. We observe tenants are more conscious about capex for renovations and incentives, which may mean leasing decisions may take longer.
• Management expects slight movements in reversions as the spread between new signings over expiring rents narrowed.

Revitalizing Festival Walk mall

• Read more at SGinvestors.io.

Li Jialin Maybank Research | https://www.maybank-ke.com.sg/ 2024-08-05 SGinvestors.io

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