SINGAPORE: Mapletree Pan Asia Commercial Trust (MPACT) reports a 1.8% higher distribution per unit (DPU) than last year, amounting to 2.29 cents for the 4QFY2023/2024 ending on March 31.
The Edge Singapore reported that during the quarter, gross revenue rose 2.6% year-on-year to S$239.2 million, while net property income (NPI) increased 3.2% to S$183.1 million.
The uptick in revenue and NPI was primarily driven by the performance of MPACT’s assets in Singapore and steady contributions from Festival Walk in Hong Kong, though adverse foreign currency movements somewhat offset these gains.
Net finance costs for the quarter surged by 10.8% year-on-year to S$56.4 million, leading to a 2.5% year-on-year increase in distributable income, which amounted to S$120.5 million.
However, the DPU for the full fiscal year ending FY2023/2024 declined 7.3% year-on-year to 8.91 cents, attributed to higher interest rates.
For the entire fiscal year, gross revenue soared by 16.0% year-on-year to S$958.1 million, and NPI rose by 15.2% year-on-year to S$727.9 million.
This growth was mainly fueled by the full-year contributions from MPACT’s overseas assets acquired through the merger, partially offset by a stronger Singapore dollar against foreign currencies.
Distributable income increased by 5.2% year-on-year to S$468.6 million, despite a substantial 39.0% year-on-year surge in net finance costs to S$225.5 million.
As of March 31, MPACT’s portfolio occupancy stood at 96.1%, with a weighted average lease expiry (WALE) of 2.4 years. Assets under management (AUM) reached S$16.5 billion, with a net asset value (NAV) per unit of S$1.75.
The trust’s leverage stood at 40.5%, accompanied by an adjusted interest coverage ratio of 2.9 times. Additionally, cash and cash equivalents amounted to S$135.6 million as of March 31.
Sharon Lim, CEO of the manager, expressed satisfaction with MPACT’s performance amidst challenges, highlighting the uplift in gross revenue, NPI, and DPU for 4QFY2023/2024 as indicators of operational resilience and adaptability.
She pointed out the yearly increase in portfolio committed occupancy to 96.1% and a positive rental reversion of 2.9%, emphasising the performance of VivoCity, the flagship asset, which achieved a record in full-year tenant sales.
Looking forward, Ms Lim stated that MPACT is well-positioned to capitalise on strategic opportunities, focusing on refining its capital structure and dynamic portfolio management.
She said, “We will continue to pursue initiatives aimed at safeguarding and enhancing long-term unitholder value. Our Singapore assets have consistently delivered.
With this market’s inherent stability, it will remain a significant component of our AUM and NPI, reinforcing MPACT’s foundational strength.”
MPACT’s ex-date is set for May 2, with the record date following on May 3. DPUs will be disbursed to unitholders on June 6. /TISG