Mapletree Pan Asia Commercial Trust (MPACT) 2026 Investor Update: Financial Performance, Portfolio Highlights, and Market Outlook

Mapletree Pan Asia Commercial Trust (MPACT) Q3 and YTD FY25/26 Investor Update – Key Developments and Strategic Focus

Overview: Stability and Scale Across Asia’s Gateway Markets

MPACT, a flagship commercial REIT sponsored by Mapletree Investments, continues to demonstrate its strategy of providing stability and scale across five key gateway markets in Asia: Singapore, Hong Kong, China, Japan, and South Korea. The trust manages a diversified portfolio of 15 properties, with assets under management (AUM) totaling S\$15.5 billion and a market capitalization of S\$7.7 billion. Core assets, including VivoCity and Mapletree Business City (MBC) in Singapore, constitute 51% of the portfolio, anchoring its operational strength.

Financial Performance: Singapore Drives Growth Amid Overseas Headwinds

Q3 FY25/26 Results

Gross Revenue: S\$219.4 million, down 1.9% year-on-year (yoy), mainly due to currency headwinds and the absence of contributions from recently divested Japanese assets (TSI and ASY).
Net Property Income (NPI): S\$164.9 million, down 1.2% yoy.
Finance Expenses: Down 10.2% yoy, reflecting lower interest rates and reduced borrowings following asset divestments.
Amount Available for Distribution: Up 3.3% yoy to S\$108.2 million.
Distribution Per Unit (DPU): S\$2.05 cents, up 2.5% yoy, supported by robust Singapore performance and finance cost savings.

YTD FY25/26 Results

Gross Revenue: S\$656.6 million, down 4.3% yoy.
NPI: S\$494.8 million, down 3.7% yoy.
Finance Expenses: Down 14.5% yoy, due to debt reduction and lower interest rates.
DPU: Held steady at S\$6.07 cents.

The underlying story is Singapore’s resilience: excluding divested assets, Singapore properties saw gross revenue and NPI rise by 2.5% and 4.8% respectively, offsetting overseas softness.

Balance Sheet and Capital Management: Strengthened Resilience

Net Asset Value (NAV) per Unit: S\$1.75 as at 31 Dec 2025, impacted by SGD strength. Without forex effects, NAV would be S\$1.78.
Aggregate Leverage: 37.3%, down from 38.2% as at Dec 2024.
Interest Coverage Ratio (ICR): 3.1x, well above statutory minimum.
Fixed Rate Debt: 71.8% of total debt, providing stability against rate volatility.
S\$0.8 billion in available liquidity from cash and undrawn facilities.
All FY25/26 refinancing completed; no more than 24% of debt due in any financial year, with a well-distributed maturity profile.
~97% of distributable income derived from or hedged to SGD.

Portfolio Highlights: Robust Singapore, Proactive Management Overseas

Portfolio Committed Occupancy: 88.1%, with Singapore assets notably strong (VivoCity 100%, MBC 93.5%).
Tenant Retention Rate: 66.3% across the portfolio.
VivoCity: Flagship asset, delivered 14.7% rental uplift on renewals, 2.6% yoy growth in shopper traffic, and 3.8% yoy rise in tenant sales.
Festival Walk (HK): Retail occupancy at 98.4%, but office component divested for HKD1.96 billion (S\$328.1 million), in line with valuation.
China and Japan: Facing macro headwinds, with China properties seeing a mid-teens rental reduction on major renewal and Japan’s occupancy at 73.1% post-divestments.
South Korea (The Pinnacle Gangnam): 99.9% occupancy, 51.3% rental reversion, showing strong operational performance.

Strategic Asset Repositioning: Major Divestments and Sharpened Focus

Divestment of Festival Walk Office Tower: Sold for HKD1.96 billion (S\$328.1 million), in line with independent valuation. This follows the earlier divestment of two Japanese office buildings in August 2025.
Impact: These moves strategically increase MPACT’s exposure to Singapore, which now accounts for 58% of portfolio AUM and 66% of NPI post-divestment. The divestments enhance financial flexibility, sharpen focus on high-performing assets, and mitigate risks from Greater China headwinds.

Active Asset Enhancement and Tenant Engagement

VivoCity Asset Enhancement Initiative (AEI): Completion of a major two-phase rejuvenation of Basement 2, expanding F&B offerings and increasing retail space by 14,000 sq ft (from car park conversion). Estimated ROI for the S\$43 million project is >10%. Additional space reconfigurations have delivered ROIs of 20-40% across various AEIs since opening.
Proactive Leasing: Introduction of new-to-market tenants (e.g., Dyson, Andar, Sen-Ryo) and refreshes of existing stores (e.g., Charles & Keith, Wine Connection) at VivoCity. Enhanced festive activities and partnerships (e.g., Miniso Disney Zootopia pop-up, TANGS Christmas market) drive engagement and footfall.
Festival Walk Initiatives: Fresh retail concepts (e.g., Chagee bubble tea, dental clinic), festive events leveraging pop culture (e.g., Sanrio x MIRROR, Namagaki Festival) to maintain relevance amid uneven Hong Kong retail conditions.

Sustainability Commitment: Net Zero By 2050 and Green Initiatives

FTSE4Good Indices Inclusion: MPACT has been admitted to the FTSE4Good Developed Index and Asia Pacific Index, affirming its ESG credentials.
District Cooling Partnership: Mapletree Investments and SP Group will deploy a distributed district cooling system in the HarbourFront Precinct (serving VivoCity and BOAHF), with phased implementation from 2027 and full operation by 2031. This supports energy efficiency and net zero goals.
Targets: 33% of portfolio lettable area in green leases by FY25/26, maintain 100% green-certified portfolio, increase installed solar capacity to 4,200kWp, and reduce energy intensity by 40% from FY11/12 by 2030.

Market Environment: Macro Risks and Outlook

Singapore: Anchors portfolio stability, with steady retail and office market performance, limited new supply supporting rental growth, and tourism rebound driving visitor arrivals and retail sales.
Hong Kong: Retail market supported by visitor arrivals and ongoing government initiatives, but substantial new supply in Kowloon East may pressure rents and occupancy.
China & Japan: Facing higher vacancy and rental pressure from new supply and macro uncertainties.
South Korea: Strong demand for prime ESG-compliant office space, though new supply in CBD and GBD may moderate growth.

Potentially Price-Sensitive Developments

Strategic Divestments: The sale of Festival Walk Tower and earlier Japanese office assets is highly material, as it strengthens MPACT’s financial position, increases Singapore weighting, and mitigates risk from China/HK exposure. These moves may be positively received by the market for their prudence and impact on stability.
Singapore Outperformance: VivoCity’s strong rental uplift, asset enhancement, and rising sales/footfall are key drivers for portfolio DPU growth and could support unit price.
Sustainability Recognition and New Projects: Admission to FTSE4Good Index and new district cooling partnership may attract ESG-focused investors.
Debt Management: Lower finance costs, high fixed-rate debt ratio, and ample liquidity further enhance stability.
Risks: Forex headwinds, macro uncertainties in China and Japan, and new supply in Hong Kong remain key challenges.

Conclusion

MPACT’s Q3 and YTD FY25/26 performance highlights its resilience and strategic agility. With Singapore assets driving growth and stability, the trust is actively repositioning its portfolio to focus on quality, mitigate overseas risks, and strengthen its balance sheet for future opportunities. Asset enhancements, tenant engagement, and sustainability initiatives further support long-term value creation. However, investors should remain mindful of ongoing macro risks and sector-specific headwinds, particularly in overseas markets.

Disclaimer

This article is for informational purposes only and does not constitute financial advice or an offer to buy or sell any securities. Investors should conduct their own due diligence and consult professional advisers before making investment decisions. The information is based on the latest available data as at February 2026 and may be subject to change.