Broker Name: Maybank Research Pte Ltd
Date of Report: October 24, 2025
Excerpt from Maybank Research Pte Ltd report.
Report Summary
- Mapletree Pan Asia Commercial Trust (MPACT) reported a stable 2Q FY26 distribution per unit (DPU) of SGD 2.01 cents, up 1.5% year-on-year, driven by stronger performance at VivoCity, improved margins, and lower finance expenses.
- Portfolio occupancy was slightly lower at 88.9%, with a dip in Japan offset by improvements elsewhere; rental reversions remained flat due to a focus on occupancy, with VivoCity showing strong positive reversion.
- Finance expenses decreased 16.4% year-on-year, reflecting lower interest rates and proactive balance sheet management; gearing remained stable at 37.6% with a reduced cost of debt.
- SGD 43m asset enhancement initiative at VivoCity was completed, delivering an estimated ROI of over 10%; management continues to focus on portfolio optimisation, especially in Japan.
- FY26 DPU estimate was raised by 1.2% due to better margins and lower borrowing costs; target price was lifted to SGD 1.55, and the BUY rating is maintained, backed by resilient Singapore operations and proactive management.
- Main risks include weaker leasing in China, Japan, and Singapore, softer reversions in Hong Kong, slower retail sales in Singapore, and potential increases in interest costs.
- MPACT’s diversified portfolio spans five Asian markets with a balanced retail-office-business park mix, and is backed by strong governance and sustainability initiatives.
Above is an excerpt from a report by Maybank Research Pte Ltd. Clients of Maybank Research Pte Ltd can be the first to access the full report from the Maybank website : https://www.maybank.com/investment-banking
