MAPLETREE Pan Asia Commercial Trust (MPACT) posted a distribution per unit (DPU) of S$0.0209 in the first quarter ended Jun 30, down 4.1 per cent from the same period a year ago.
The decrease in DPU comes amid increased financial costs in the current high interest rate environment.
Revenue slipped 0.2 per cent to S$236.7 million from S$237.1 million previously, the real estate investment trust’s (Reit) manager said in a bourse filing on Tuesday (Jul 30).
Sharon Lim, chief executive officer of the manager, said: “Despite the broad market headwinds during the quarter, we remain confident in MPACT’s ability to maintain a steady trajectory.
“Our Singapore assets have effectively buffered against foreign exchange fluctuations and softness in certain overseas markets.”
Net property income edged up 0.1 per cent to S$179.4 million from S$179.2 million in the corresponding year-earlier period.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Distributable income declined 3.5 per cent year on year to S$110.8 million from S$114.8 million previously.
During the quarter, MPACT renewed and re-let approximately 1.2 million square feet of net lettable area. The Singapore portfolio stood out with “notable rental uplifts” of 19.9 per cent at VivoCity and 2.3 per cent at Mapletree Business City.
The Reit manager said on Monday it is implementing a major upgrade of VivoCity’s basement 2 to drive future performance, and is expected to deliver approximately 10 per cent return on enhancement.
In the first phase, the number of food kiosks will increase to 24 from 21. Lower-yielding areas in the mall will be transformed into higher-yielding spaces in the second phase, with approximately 14,000 sq ft of new retail space to be added. The upgrade is expected to be completed by the end of next year.
The divestment of Mapletree Anson, which is scheduled to be finalised on Wednesday, will bolster the group’s “financial position and strategic agility”, the Reit manager said.
As at Jun 30, the portfolio committed occupancy stood at 94 per cent. The weighted average lease expiry was 2.3 years for the retail segment and 2.7 years for the office and business park segment.
MPACT maintained an aggregate leverage ratio of 40.5 per cent in Q1, with a weighted average all-in cost of debt at 3.54 per cent per annum.
The Reit’s distribution will be paid out on Sep 12.
Units of the Reit closed flat at S$1.29 on Tuesday before the announcement.
