MPACT’s second-quarter distribution falls 3.5% as overseas income weakens

Mapletree Pan Asia Commercial Trust (MPACT) reported a second-quarter distribution per unit of S$0.0194, down 3.5 per cent from S$0.0201 a year earlier. Its manager announced the results for the quarter ended September on Oct 30.

The manager attributed the decline mainly to reduced income from overseas properties. Factors included a lease that was not renewed at Japan’s Fujitsu Makuhari Building and difficult market conditions in China and Hong Kong. Earnings also lost contributions from three properties sold: TS Ikebukuro Building, Abas Shin-Yokohama Building and Festival Walk’s office component.

Lower financing expenses provided some relief, as did VivoCity’s improved performance. The mall benefited from continued rental growth and the completion of enhancement works at Basement 2, the manager said.

Quarterly revenue decreased 5 per cent to S$207.5 million, compared with S$218.5 million a year earlier. Net property income was S$153.5 million, a fall of 6.3 per cent from S$163.9 million. Income available for distribution dropped 2.9 per cent to S$103.1 million from S$106.2 million.

For the first half ended September, distribution per unit slipped 3 per cent to S$0.039 from S$0.0402. Revenue declined 5.3 per cent to S$413.9 million, and net property income fell 6.5 per cent to S$308.3 million.

Committed occupancy across the portfolio reached 85.6 per cent at Sept 30, compared with 84.4 per cent at end-June. Mapletree Business City’s figure rose to 95.4 per cent. Sharon Lim, chief executive of MPACT’s manager, said key committed leases there would start progressively from Q3 FY2027, adding rental income.

The second-quarter payout is scheduled for Dec 16, with Nov 10 set as the record date.