Mapletree Pan Asia Commercial Trust (MPACT) posted a net property income of S$154.8 million for the quarter ended 30 June 2026, down 6.8% year-on-year, as higher contributions from Singapore and reduced finance costs partly offset softer overseas performance and the impact of earlier asset disposals.
Gross revenue slipped 5.6% YoY to S$206.5 million. Amount available for distribution to unitholders eased 2.4% to S$104.2 million, translating into a distribution per unit (DPU) of 1.96 Singapore cents, 2.5% lower than a year earlier. The distribution will be paid on 16 September 2026, with books closing on 7 August 2026.
Segmentally, Singapore assets lifted gross revenue and NPI by 2.1% and 1.0% YoY respectively, supported by VivoCity, whose NPI climbed 8.9% on the back of a 13.5% rental reversion, near-full committed occupancy and a 4.9% rise in tenant sales. Conversely, overseas assets saw lower contributions, weighed down by currency weakness in Hong Kong and Japan and the absence of income from properties divested in FY25/26. Portfolio-wide, rental reversion was a positive 4.3%, while committed occupancy stood at 84.4% with a weighted average lease expiry of 2.3 years.
Property operating expenses decreased 1.8% YoY to S$51.7 million, largely due to the absence of costs from divested assets. Finance expenses fell 18.4% to S$40.9 million after proceeds from divestments were used to pare debt and following proactive refinancing at lower coupon rates.
Management highlighted several headwinds, including muted demand in certain North Asian markets and adverse currency movements. These were partially cushioned by resilient domestic performance and disciplined capital management.
During the quarter, MPACT redeemed S$250 million of 3.50% perpetual securities and issued S$200 million of 2.53% senior green notes maturing in 2033. The transactions reduced the weighted average cost of debt to 2.94% per annum, lifted interest-coverage to 3.3 times and extended average debt maturity to 3.3 years. Aggregate leverage stood at 37.7%, with 77.4% of borrowings fixed or hedged and around S$0.6 billion of available liquidity.
Chief executive officer Sharon Lim said the macro environment “remained challenging” and is unlikely to improve quickly, but noted that the trust’s portfolio optimisation and debt-reduction efforts helped mitigate overseas softness in the quarter. She added that Singapore “remains MPACT’s cornerstone for resilience”, citing ongoing leasing progress at Mapletree Business City, where a major committed tenant is expected to begin operations later this year. Lim indicated the manager will continue to focus on quality assets in core markets, prioritising occupancy over headline rents in weaker geographies while deploying capital prudently.
Looking ahead, MPACT plans to continue backfilling space at its Singapore assets, pursue selective divestments and refinancings to manage interest-rate risk, and monitor consumer spending trends at Festival Walk in Hong Kong following the completion of a 18,800-sq-ft reconfiguration that is expected to yield an approximate 50% return on investment.