Broker Name: CGS International
Date of Report: October 23, 2025
Excerpt from CGS International report.
- Mapletree Pan Asia Commercial Trust (MPACT) reported 2Q/1HFY26 results in line with expectations, with DPU up 1.5% year-on-year due to finance cost savings despite revenue and NPI declines from weaker overseas operations and forex impacts.
- VivoCity remains the strongest asset with full occupancy and positive rental reversions, while overseas assets like Festival Walk (HK), China, and Japan properties faced challenges such as negative rental reversions and dips in occupancy.
- Management expects funding costs to remain stable for FY26, with gearing slightly lower at 37.6% and a resilient Singapore portfolio comprising 58% of assets under management.
- DDM-based target price is slightly raised to S\$1.52; MPACT offers about 5.5% DPU yield and is rated Add, with key catalysts including overseas portfolio improvements and further interest rate declines.
- Downside risks include slower recovery for overseas properties and less-than-expected rate cuts.
- ESG rating is B- (LSEG), with strengths in green certification and solar initiatives, but with room to improve on emissions and governance scores.
- Financials show stable distributable profits and dividends, but with modest growth projections and a solid balance sheet.
Report Summary
- MPACT’s Singapore assets are resilient and remain the key earnings driver, offsetting overseas headwinds.
- Management maintains stable funding costs and gearing levels; dividend yield is attractive at around 5.5%.
- While challenges remain for overseas assets, improvements and rate cuts could be catalysts; ESG efforts are ongoing but need further enhancement.
Above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website: https://www.cgsi.com/
