Mapletree Pan Asia Commercial Trust's 4Q FY24/25 Result Review

$Mapletree PanAsia Com Tr(N2IU.SI)$

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

MPACT reported a YoY decline in gross revenue, NPI, amount available for distribution, and DPU, mainly due to the divestment of Mapletree Anson in July 2024 and weaker overseas contributions. However, performance was partly cushioned by lower property expenses and steady contributions from VivoCity despite ongoing AEI works.

Rental Reversion

Portfolio rental reversion for FY24/25 was 3.6%, supported by positive reversions from Singapore properties, while China, Hong Kong and Japan continued to record negative reversions.

Shopper Traffic & Tenant Sales

At VivoCity, shopper traffic declined marginally by 0.1% YoY, while tenant sales dipped 2.1% due to AEI disruptions. Festival Walk saw shopper traffic grow by 5.6% YoY, but tenant sales fell 8.4%, mainly impacted by outbound travel and cross-border spending.

Asset Enhancement Initiative

The AEI at VivoCity Basement 2 is progressing as planned. Phase 1 is almost complete with most kiosks operational, and Phase 2 expansion is underway. The entire AEI is targeted for completion by end-2025.

Related Parties Shareholding

• REIT Sponsor's Shareholding: Favorable

• REIT Manager's Shareholding: Favorable

• Directors of REIT Manager's Shareholding: Less Favorable

Lease Profile

• Committed Occupancy: Less Favorable

• Income Received in SGD/Major Currencies: Less Favorable

• Highest Annual Lease Expiry in 4 Years: Less Favorable

• WALE: Less Favorable

• Weighted Average Land Lease Expiry: Less Favorable

Debt Profile

• Adjusted Interest Coverage Ratio: Moderate

• Cost of Debt: Moderate

• Gearing Ratio: Moderate

• Fixed Rate Debt Proportion: Favorable

• Unsecured Debt Proportion: Favorable

• Highest Annual Debt Maturity in 4 Years: Favorable

• WADM: Favorable

Diversification Profile

• Major Sector Weightage: Favorable

• Top Geographical Weightage: Less Favorable

• Top Property Weightage: Moderate

• Top 5 Properties' Weightage: Less Favorable

• Top Tenant Weightage: Moderate

• Top 10 Tenants' Weightage: Favorable

Key Financial Metrics

• Property Yield: Less Favorable

• Manager's 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:95.5% from Operation4.3% from Management Fees Paid in Units0.2% being Retained

Trends (Up to 10 Years)

• Uptrend: NAV per Unit, Top 10 Tenants' Weightage

• Slight Uptrend: Operating Distributable Income over Manager's Fees

• Flat: DPU from Operations, Operating Distribution Proportion

• Slight Downtrend: None

• Downtrend: Committed Occupancy, Adjusted Interest Coverage Ratio, Top 5 Properties' Weightage, Property Yield, Operating Distributable Income on Capital, Operating Distributable Income Margin

Price Range & Relative Valuation Metrics

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

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

Author's Opinion

Compared to the previous quarter, gross revenue remained stable, while NPI improved slightly due to lower property expenses. However, DPU declined slightly. On the debt front, only 9% of borrowings maturing in the next fiscal year.

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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.