Mapletree Pan Asia Commercial Trust - OCBC Investment Research 2025-01-24: Singapore Resilience Yet To Offset Overseas Weakness

• Mapletree Pan Asia Commercial Trust’s 3QFY25 results came in within our expectations. Gross revenue and net property income (NPI) fell 7.4% and 8.5% y-o-y to S$223.7m and S$166.9m, respectively.

3QFY25 DPU met our expectations

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• Cumulatively, 9MFY25 NPI slipped 5.7% y-o-y to S$514.0m, while DPU decreased by 8.3% to 6.07 Singapore cents. This accounted for 73.9% of our FY25 forecast.

Slight sequential decline in portfolio occupancy

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• Japan also saw a slight uptick in occupancy by 0.3 ppt q-o-q to 82.6%, but China and The Pinnacle Gangnam (TPG) in Korea recorded sequential dips of 2.8 ppt and 3.0 ppt to 84.3% and 82.6%, respectively.

The outlook for Mapletree Pan Asia Commercial Trust’s Japanese properties in the Makuhari region remains subdued, while there are some downside risks in China due to the likelihood of non-renewals by 1-2 tenants.

There was better news from Korea, as Mapletree Pan Asia Commercial Trust managed to secure a major lease in TPG after the quarter end, and this will bump up the property’s occupancy to 100% and overall portfolio occupancy to 90.4%.

Rental reversions were strong in Singapore but weak for its overseas assets.

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OCBC Research Team OCBC Investment Research | https://www.iocbc.com/ 2025-01-24 SGinvestors.io

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