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.