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 with DPU up 1.5% YoY, led by strong performance from VivoCity, margin improvements, and lower finance costs.
- Revenue and net property income declined mainly due to Japan asset divestments and adverse FX, but lower utilities and borrowing costs cushioned the impact.
- Occupancy remained high at 88.9%, with improvements in Singapore offsetting some weakness in Japan and Greater China; rental reversions were flat overall.
- Gearing was stable at 37.6%, and proactive capital management, including gradual repricing of swaps and portfolio optimisation, is a continued focus.
- FY26 DPU forecast was raised by 1.2% due to better margins and lower borrowing costs; target price was increased to SGD1.55 with a maintained BUY rating.
- Risks include weaker rental reversions in Hong Kong, slower retail sales in Singapore, and higher interest costs as hedges reprice.
- MPACT benefits from diversified exposure in five Asian markets, with a strong Singapore base and support from Temasek’s Mapletree Investments.
- Environmental, social, and governance (ESG) initiatives are emphasized, with energy savings, green loans, high board independence, and gender diversity.
- Valuations are seen as fair (5.4% yield, 0.8x PB), and Singapore’s resilience is expected to underpin stable distributions despite overseas headwinds.
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 Research Pte Ltd website : www.maybank.com/investment-banking
