Mapletree Pan Asia Commercial Trust's 2Q FY24/25 Result Review

$Mapletree PanAsia Com Tr(N2IU.SI)$

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Gross revenue, NPI, the amount available for distribution and DPU declined YoY primarily due to reduced income from the divestment of Mapletree Anson in July, higher property expenses, currency impacts from a stronger SGD against JPY and RMB, and absence of one-off property tax refund.

Rental Reversion

Portfolio rental reversion is 1.2%, with only Singapore properties seeing positive rental reversions. All other regions experienced negative reversion.

Shopper Traffic & Tenant Sales

At VivoCity, both shopper traffic and tenant sales have declined YoY due to temporary disruptions from the AEI. At Festival Walk, tenant sales decreased YoY, although there was a slight increase in shopper traffic.

Divestment

Mapletree Anson was divested on 31 July. Proceeds were directed toward debt repayment to reduce gearing.

Asset Enhancement Initiative

VivoCity’s AEI is underway, targeting completion by the end of 2025. Phase 1 will add three food kiosks, and Phase 2 will convert parking spaces and reconfigure areas to increase the lettable area.

Related Parties Shareholding

• REIT Sponsor's Shareholding: Favorable

• REIT Manager's Shareholding: Favorable

• Directors of REIT Manager's Shareholding: Moderate

Lease Profile

• Occupancy: Moderate

• Income Received in SGD/Major Currencies: Less Favorable

• WALE: Less Favorable

• Highest Lease Expiry in 4 Years: Less Favorable

• Weighted Average Land Lease Expiry: Less Favorable

Debt Profile

• Gearing Ratio: Moderate

• Cost of Debt: Moderate 

• Fixed Rate Debt %: Favorable

• Unsecured Debt %: Favorable

• WADM: Favorable

• Highest Debt Maturity in 4 Years: Favorable

• Interest Coverage Ratio: Moderate 

Diversification Profile

• Top Sector Contribution: Favorable

• Top Geographical Contribution: Less Favorable

• Top Property Contribution: Less Favorable

• Top 5 Properties' Contribution: Less Favorable

• Top Tenant Contribution: Favorable

• Top 10 Tenants' Contribution: Favorable

Key Financial Metrics

• Property Yield: Less Favorable

• Management Fees over Operating Distributable Income: Favorable

• Operating Distributable Income on Capital: Moderate

• Operating Distributable Income Margin: Favorable

• Operating Distribution Proportion: Moderate

DPU Breakdown

• TTM Distribution Breakdown:95.6% from Operation4.3% from Management Fees Paid in Units0.2% being Retained

Trends (Up to 10 Years)

• Uptrend: DPU from Operation, NAV per Unit

• Flat: Operating Distributable Income over Manager's Fees, Operating Distribution Proportion

• Slight Downtrend: Committed Occupancy

• Downtrend: Adjusted Interest Coverage Ratio, Property Yield, Operating Distributable Income on Capital, Operating Distributable Income Margin

Price Range & Relative Valuation Metrics

• Dividend Yield: Average for 1y; Above +1SD for 3y, 5y & 10y

• P/NAV: Average for 1y; Below -1SD for 3y & 5y; Below -2SD for 10y

Author's Opinion

Compared to the prior quarter, declines in gross revenue, NPI, and DPU stem from the loss of income due to Mapletree Anson's divestment. Savings in interest expenses were insufficient to offset the drop in NPI. For debt, 5% is maturing in the coming 6 months.

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*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my own findings and should not be considered as professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decision.