First listed as Mapletree Commercial Trust in April 2011, where its portfolio comprises of retail and office properties in Singapore, it was merged with Mapletree North Asia Commercial Trust (with the REIT’s portfolio comprising of retail and office properties overseas) in August 2022 and renamed as Mapletree Pan Asia Commercial Trust (SGX: N2IU), or MPACT for short.

Currently, MPACT’s portfolio comprises 17 retail and office properties located in key gateway markets of Asia valued at S$16 billion – 4 in Singapore, 1 in Hong Kong, 2 in China, 9 in Japan, and 1 in South Korea.

MPACT is also the last of the trio of Mapletree REITs listed on the Singapore Exchange to publish its annual report for FY2024/25 ended 31 March this morning (27 June). To recap, Mapletree Logistics Trust was the first to do so last Friday (20 June), followed by Mapletree Industrial Trust on Wednesday (25 June), and you can read my summaries about them via the respective links below:

In this post, you will find key takeaways from MPACT’s latest annual report, along with details of its upcoming annual general meeting (AGM):

Key Takeaways from MPACT’s Annual Report

Performance Highlights:

  • Gross revenue fell by 5.1% year on year to S$908.8 million (FY2023/24: S$958.1 million), largely due to Mapletree Anson’s divestment and lower contribution from its overseas properties (mainly due to weaker performance, including lower occupancy and negative rental reversion, as well as unfavourable foreign exchange impact arising from the strengthening of the Singapore Dollar against the Japanese Yen, Hong Kong Dollar, and Chinese Renminbi).
  • In terms of contribution of revenue by the individual geographical locations, it is as follows: 60% from Singapore, 22% from Hong Kong, 9% from China, 8% from Japan, and 1% from South Korea.
  • Net property income decreased by 6.1% year on year to S$683.5 million (FY2023/24: S$727.9 million).
  • Amount available for distribution to unitholders tumbled by 9.7% year on year to S$423 million (FY2023/24: S$468.6 million), with its full year distribution per unit also down by 10% year on year to 8.02 cents/unit (FY2023/24: 8.91 cents/unit).
  • Committed occupancy of MPACT’s portfolio was at 89.6% (FY2023/24: 96.1%), stemming from declines in occupancies from Mapletree Business City (MBC) due to lease expiries and space optimisation by tenants as they adopted a more cautious approach towards space requirements, as well as from its Japan properties following the expiry of leases at Makuhari Bay Tower (MBT) and mBay POINT Makuhari (MBP).
  • Overall rental reversion for FY2024/25 was at +3.6% (with positive rental reversions achieved for all of its properties in Singapore and and South Korea, which ranged from +2.2% to +26.9%), offset by negative rental reversions for Festival Walk (at -6.9%), China properties (at -9.3%), and Japan properties (at -7.2%).
  • Portfolio valuation improved by 1.4% year on year to S$16 billion, with Singapore properties’ valuation gains (particularly that of VivoCity due to its robust performance and tighter capitalisation rates applied by the independent valuers) more than offsetting overseas declines (which stemmed largely from the Makuhari properties in Japan, as well as subdued market expectations in China and Hong Kong).
  • Aggregate leverage improved to 37.7% (FY2023/24: 40.5%), as proceeds from the divestment of Mapletree Anson (at a S$10 million gain over the property’s independent valuation of S$765 million, and a S$95 million gain over the original purchase price of S$680 million) was used to pare down debt. On the other hand, its weighted average all-in cost of debt increased to 3.51% (FY2023/24: 3.35%).

Portfolio Performance Highlights:

  • VivoCity: Delivered a 3.5% and 2.1% year-on-year growth in its full year revenue and net property income respectively; tenant sales surpassed S$1 billion milestone for the 3rd consecutive year, with committed occupancy at 99.3%, and rental reversion at +16.8%.
  • MBC: Attained a 91.2% committed occupancy and rental reversion of +2.2%.
  • mTower: Committed occupancy has climbed steady for 3 consecutive years, rising from 88% 3 years ago to 99.3% as at end FY2024/25.
  • Bank of America Harbourfront (BOAHF): Maintained its 100% occupancy status.
  • Festival Walk (Hong Kong): While shopper traffic increased 5.6% year on year, tenant sales declined 8.4% year on year to HKD 3.6 billion due to changing consumption patterns including currency-driven outbound travel and cross border spending by local residents, along with reduced spending by overseas visitors; committed occupancy remained robust at 96.8%.
  • China Properties: Recorded a combined 86.1% committed occupancy; management will continue to prioritise occupancy over rental growth to preserve income streams, as competitive pressures persist (even though its 2 properties outperformed their respective markets).
  • Japan Properties: Collectively, they have a 79.8% committed occupancy; while most of the Japan properties maintained stability, there were localised market challenges in the Makuhari submarket of Chiba affecting 3 of the REIT’s properties in that area.
  • The Pinnacle Gangnam (South Korea): Property continued to benefit from favourable market conditions; it achieved a 99.9% committed occupancy after concluding a significant lease with a new tenant towards the end of the financial year.

Progress on Sustainability:

  • Solar panels installed at its Singapore properties and Festival Walk (Hong Kong) generated 4,547 kWh of clean energy in the financial year, almost equivalent to powering both BOAHF and Sandhill Plaza (China) for an entire year.
  • Rolled out the Environmental Data Management System (EDMS) together with the Sponsor’s group-wide initiative, which enhances the ability to collect, track, and verify sustainability data across its portfolio. This allows for more precise management and data-driven decision making.

Details of MPACT’s 14th AGM

When? Tuesday, 29 July 2025
Where? 20 Pasir Panjang Road, Mapletree Business City, Town Hall – Auditorium, Singapore 117439
Time? 2.30pm

The AGM will be held in a wholly physical format, with no option for unitholders to attend virtually.

For unitholders whose units are held in a CDP account, no pre-registration is needed to attend the meeting, as verification of unitholding will be conducted on the spot. However, for unitholders whose units are held in a custodian account, if you like to attend the coming AGM, you’ll need to inform your brokerage to appoint you as a proxy to do so.

Closing Thoughts

Headwinds related with its overseas properties (lower occupancy, negative rental reversion, and unfavourable foreign exchange) continued to weigh down MPACT this financial year – with its financial performance and distribution payout recorded a year-on-year decline.

However, its not all “doom and gloom” for the REIT. In terms of portfolio occupancy, with the exception of those in China and Japan, they are all maintained at above 90%. Debt profile also continue to remain healthy, with its aggregate leverage of 37.7% providing a debt headroom of S$3.8 billion before the aggregate leverage limit of 50% is reached.

Last but not least, looking at the financial year ahead, with its overseas properties contributing approximately 40% towards the REIT’s gross revenue in the latest financial year, and at the same time, headwinds related to the lower occupancy rate and weaker foreign currency exchange showing no signs of abating, in my opinion, its very likely that the REIT’s financial performance and distribution payout for the financial year ahead will decline by a mid- to high-single digit percentage.

As a unitholder of the REIT, I’ll be keeping a very close watch on the occupancy and rental reversion statistics of its properties in Hong Kong, China, and Japan in the coming quarters ahead to see if there’s any stabilisation (it’ll be the first sign of a possible rebound ahead), or if they continue to weaken.

This brings me to the end of the end of my post on the key pointers to take note from MPACT’s latest annual report for FY2024/25, details on its upcoming AGM, along with my thoughts about its performance in the coming financial year ahead. Please note that all the opinions within are purely my own which I’m sharing for educational purposes only, and not as any buy or sell calls for the REIT’s units. Please do your own due diligence before you make any investment decisions.

Related Documents

Disclaimer: At the time of writing, I am a unitholder of Mapletree Pan Asia Commercial Trust.

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