Broker: CGS International
Date of Report: July 31, 2026
Excerpt from CGS International report.
Report Summary
Stock Focus: Mapletree Pan Asia Commercial Trust (MPACT)
Ticker: MPACT SP
Call to Action: ADD (Buy) — Target Price: S$1.52 (current price: S$1.36)
Upside: 11.8%
Key Ideas & Highlights:
- Resilient Singapore Portfolio: MPACT’s Singapore assets, especially VivoCity, continue to anchor earnings with strong rental reversions (13.5%) and nearly full occupancy (99.7%). VivoCity’s performance is expected to further improve after the completion of the Circle Line extension.
- Backfilling Underway: Mapletree Business City (MBC) saw a temporary dip in occupancy due to tenant downsizing, but management expects recovery as new leases commence in 2HFY27, with a major lease starting November 2026.
- Overseas Headwinds: Overseas assets faced challenges. Festival Walk in HK showed positive retail signs but continued negative rent reversions. China assets experienced weak rental reversions (-29.2%) and low occupancy (82.4%), while Japan occupancy dropped due to a major expiry. Overseas segment remains a risk.
- Stable Financials: 1QFY27 DPU was 1.96 Scts (-2.5% yoy), in line with expectations. Guidance is for cost of debt to remain below 3.16% for FY27.
- ESG Commitment: MPACT maintained 100% green certification, increased solar capacity, and improved energy intensity, with ongoing sustainability initiatives.
Implications:
- MPACT is recommended as an “Add” due to the resilience of its Singapore portfolio, led by VivoCity and expected recovery at MBC.
- The main rerating catalysts are successful backfilling at MBC and the Makuhari Building in Japan.
- Risks include prolonged overseas weakness, further vacancies in Japan, and higher funding costs.
Summary Table:
- Recommendation: ADD (Buy)
- Target Price: S\$1.52
- Current Price: S\$1.36
- Dividend Yield (FY27F): 5.9%
- Key Catalysts: Lease commencements in Singapore, successful backfilling overseas
- Key Risks: Overseas market weakness, higher costs
Above is an excerpt from a report by CGS International. Clients of CGS International can access the full research report from the broker’s website.
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