Mapletree Pan Asia Commercial Trust Review @ 2 November 2023

Basic Profile & Key Statistics

• Main Sector(s): Office & Retail
• Country(s) with Assets: Singapore, China, Hong Kong, Japan & South Korea
• No. of Properties (exclude associate/fund): 18

Key Indicators

Performance Highlight

Gross revenue and NPI increased YoY mainly due to the merger with Mapletree North Asia Commercial Trust. However, due to higher interest expenses, the amount available for distribution only increased slightly and the DPU has declined YoY due to enlarged unitholder base as a result of the merger.

Rental Reversion

Overall rental reversion is at 3.2%. 

Shopper Traffic & Tenant Sales

For both VivoCity and Festival Walk, shopper traffic and tenant sales continue to improve YoY.

Asset Enhancement Initiative

Reconfiguration of the VivoCity Level 1 F&B cluster is being carried out and is expected to be completed by 3Q FY23/24.

Related Parties Shareholding

• REIT Sponsor's Shareholding: Above median by 20% or more
• REIT Manager's Shareholding: Above median by 20% or more
• Directors of REIT Manager's Shareholding: ± 10% from median

Lease Profile

• Committed Occupancy: ± 5% from median
• Income in SGD/Major Currencies: Below median by 20% or more
• WALE: Below Below median by 20% or more
• Highest Lease Expiry within 5 Years: ± 10% from median; Falls in FY24/25
• Weighted Average Land Lease Expiry: ± 10% from median

Debt Profile

• Gearing Ratio: ± 10% from median
• Gearing including Perps: ± 10% from median
• Cost of Debt: Below median by 10% or more
• Fixed Rate Debt %: ± 10% from median
• Unsecured Debt %: ± 5% from median
• WADM: Above median by 10% or more
• Highest Debt Maturity within 5 Years: Below median by 20% or more; Falls in FY24/25
• Interest Coverage Ratio: ± 10% from median

Diversification Profile

• Top Geographical Contribution: ± 10% from median
• Top Property Contribution: Above median by 20% or more
• Top 5 Properties' Contribution: Above median by 20% or more
• Top Tenant Contribution: Below median by 20% or more
• Top 10 Tenants' Contribution: Below median by 20% or more

Key Financial Metrics

• Property Yield: Below median by 10% or more
• Management Fees over Operating Distributable Income: Below median by 20% or more; $8.93 distribution for every dollar paid 
• Operating Distributable Income on Capital: Below median by 10% or more
• Operating Distributable Income Margin: Above median by 10% or more
• Operating Distribution Proportion: Above median by 5% or more

DPU Breakdown

• TTM DPU Breakdown
• 95.7% from Operation
• 4.3% from Management Fees Paid in Units
• TTM DPU = 99.9% of Distributable Income

Trends

• Uptrend: DPU from Operation, NAV per Unit
• Slight Downtrend: Committed Occupancy
• Downtrend: Interest Coverage Ratio, Property Yield, Operating Distributable Income on Capital, Operating Distributable Income Margin

Relative Valuation

• Dividend Yield: Above +2SD for 1y,3y & 5y
• P/NAV: Below -2SD for 1y, 3y & 5y

Author's Opinion

Favorable	Less Favorable
Diversified Sector	Low Income in SGD/Major Currencies
High REIT Sponsor's Shareholding	Short WALE
High REIT Manager's Shareholding	High Top Property & Top 5 Properties' Contributions
Low Cost of Debt	Low Property Yield
Long WADM	Low Operating Distributable Income on Capital
Well Spread Debt Maturity	Interest Coverage Ratio Downtrend
Low Top Tenant & Top 10 Tenants' Contributions	Property Yield Downtrend
Competitive Management Fees	Operating Distributable Income on Capital Downtrend
High Operating Distributable Income Margin	Operating Distributable Income Margin Downtrend
High Operating Distribution Proportion
DPU from Operation Uptrend
NAV per Unit Uptrend

The performance has improved as compared to the previous quarter. In terms of debt, fixed rate debt proportion is at a moderate level of 79.9%. There is only 1% of borrowings to mature in the 2H FY23/24. Inclusive of the 1 %, approx. 11.6% of borrowings expiring within the coming 12 months. 

For more information, check out:

SREITs Dashboard - Detailed information on individual Singapore REIT

SREITs Data - Overview and details of Singapore REIT

REIT Review - List of previous REIT review posts

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*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my findings and should not be considered professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decisions.