Broker: OCBC Group Research
Date of Report: 31 July 2026
Excerpt from OCBC Group Research report.
Report Summary
Stock Focus: Mapletree Pan Asia Commercial Trust (MPACT)
Ticker: MPACT SP EQUITY
- Action: HOLD
- Target Price / Fair Value: SGD 1.38
- Last Close: SGD 1.36
- Key Highlights:
- 1QFY27 distribution per unit (DPU) fell 2.5% year-on-year to 1.96 Singapore cents, slightly below expectations.
- Portfolio occupancy dropped 5 percentage points quarter-on-quarter to 84.4%, mainly due to Japan’s leasing issues.
- Rental reversions remained solid (+4.3%), led by strong performance in Singapore and South Korea, offset by negative rental reversions in China and Hong Kong.
- Aggregate leverage ratio increased to 37.7%, following debt refinancing activities; weighted average cost of debt improved to 2.94%.
- Management guidance on cost of debt is around 3.0% to low-3% range, expected to stay below FY26’s level.
- FY27 and FY28 DPU forecasts lowered due to weaker Japanese income and higher interest cost assumptions.
- Investment risks include macroeconomic slowdown, unsuccessful acquisitions, and non-renewal of key tenant leases.
- Implications:
- Maintaining HOLD reflects cautious optimism amid ongoing challenges in overseas markets.
- Fair value cut from SGD 1.45 to SGD 1.38 due to lower growth assumptions and weaker performance in Japan and China.
- Investors should monitor occupancy recovery, rental reversion trends, and execution of tenant renewals.
Actionable Insight: Investors are advised to HOLD MPACT shares and monitor for improvements in occupancy and rental growth. The fair value is set at SGD 1.38.
Above is an excerpt from a report by OCBC Group Research. Clients of OCBC Group Research can access the full research report from the broker’s website: OCBC Group Research research website.
