Broker Name: CGS International
Date of Report: October 1, 2025
Excerpt from CGS International report.
Report Summary

• Mapletree Pan Asia Commercial Trust (MPACT) is expected to see its distribution per unit (DPU) bottom out in FY26-27 following adjustments for the sale of its Japan assets and tenant movements, with a gradual recovery anticipated from FY28 onwards.
• The Singapore portfolio remains resilient and is the primary contributor to performance, aided by asset enhancement initiatives (AEI) at VivoCity and improved occupancy at Mapletree Business City.
• The recent Japan asset sales are expected to be DPU-neutral due to debt reduction and interest cost savings, but the upcoming departure of a key tenant (Fujitsu) in March 2026 may temporarily drag Japan’s contributions.
• MPACT is benefiting from declining interest rates, leading to lower average debt costs and supporting DPU stability.
• Valuation remains attractive with the REIT trading below its historical average P/BV and offering a forward yield of around 5.6%.
• The target price was raised to S\$1.51 (from S\$1.48) based on a lower cost of equity, with an Add rating maintained.
• Key re-rating catalysts include improved overseas operating performance, faster backfilling of the Japan portfolio, divestment of lower-performing assets, and further declines in interest rates. Risks include slower-than-expected overseas recovery and fewer rate cuts.
• On ESG, MPACT is focusing on sustainability with green certifications and emissions reductions, but current ESG scores remain below peers, indicating room for improvement.

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.cgs-cimb.com