Mapletree Pan Asia Commercial Trust's 1Q FY24/25 Result Review

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Gross revenue and NPI remain similar YoY. However, the amount available for distribution and DPU have declined YoY due to higher finance costs.

Rental Reversion

Portfolio rental reversion is at 5.2%. This time, the negative rental reversion for Festival Walk and China properties is lower while the rental reversion for Japan properties has declined significantly.

Shopper Traffic & Tenant Sales

Shopper traffic and tenant sales have declined in both VivoCity and Festival Walk.

Divestment

On 31 July, MPACT completed the divestment of Mapletree Anson. The net proceeds will be used to repay debt. After this divestment, the gearing and interest coverage ratio would improve, and DPU is expected to improve slightly.

Asset Enhancement Initiative

Major AEI will be carried out for VivoCity, expected to be completed by 2025. Phase 1 will increase the number of food kiosks by 3, and phase 2 will involve the conversion of the car park and space reconfiguration to increase the lettable area.

Related Parties Shareholding

The sponsor and manager hold a relatively high number of shares.

Lease Profile

WALE is short with a concentrated lease expiry in FY26/27. Additionally, income in SGD/major currencies is relatively low, and the weighted average land lease expiry is short.

Debt Profile

The proportion of unsecured debt is high, accompanied by a well-spread debt maturity profile.

Diversification Profile

The diversification is strong in sectors and tenants but concentrated in geography and property contributions.

Key Financial Metrics

The operating distributable income margin is high, but the property yield is low. Management fees are competitive when compared to operating distributable income.

DPU Breakdown

• TTM Distribution Breakdown:
• 95.6% from Operation
• 4.3% from Management Fees Paid in Units
• 0.1% 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 previous quarter, gross revenue and NPI have declined slightly. Coupled with higher finance costs, lower forex gain, and higher tax expenses, DPU has declined. For debt maturity, 13% of debt is maturing in this 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 findings and should not be considered 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 decisions.