Revenue growth supported by Singapore’s performance, but global challenges impact earnings
Mapletree Pan Asia Commercial Trust (MPACT) reported a 9.1% drop in its distribution per unit (DPU) for the third quarter, ending December 31, 2023, to 2.20 Singapore cents. Despite the drop in DPU, MPACT saw a slight 0.8% increase in gross revenue, reaching S$241.6 million for the quarter, compared to S$239.8 million in the same period the previous year.
Net property income grew by 1.7%, reaching S$182.4 million. The growth was primarily driven by Singapore’s robust performance, with positive contributions despite higher utility expenses. However, the contributions from Hong Kong and Japan were affected by a stronger Singapore dollar.
Distributable income decreased by 9.3% year-on-year, amounting to S$115.3 million.
The trust’s outlook for the Singapore retail sector highlights challenges, including inflation, manpower shortages, and high operating costs. The strength of the Singapore dollar could also encourage outbound travel, which may impact local retail sales. In addition, the office market faces uncertainties, with an expected increase in office space supply, which could dampen rental growth due to global economic conditions.
MPACT’s strength remains supported by core assets such as Mapletree Business City and VivoCity, alongside its manager’s operational expertise, positioning it to navigate current challenges.
