MPACT Q1 DPU falls 3.8% to S$0.0201 on lower contributions, divestment of Mapletree Anson

[SINGAPORE] The manager of Mapletree Pan Asia Commercial Trust (MPACT) on Wednesday (Jul 30) reported a 3.8 per cent fall in distribution per unit (DPU) to S$0.0201 for the first quarter of FY2026, from S$0.0209 in the year-ago period.

Revenue for the period ended Jun 30, 2025, fell 7.6 per cent to S$218.6 million from S$236.7 million the year prior, on account of lower contributions from most of its properties.

Contributions from Singapore assets fell due mainly to the divestment of Mapletree Anson in 2024. MPACT’s properties in overseas markets, meanwhile, had lower occupancies and negative rental reversions. They also faced foreign exchange impact as the Hong Kong dollar and renminbi depreciated against the Singapore currency.

As a result of the divestment of Mapletree Anson, MPACT’s property operating expenses were down 8.1 per cent at S$52.6 million for Q1 FY2026, from S$57.3 million in Q1 FY2025.

Lower utility expenses and a refund of the prior year’s property tax also led to decreased costs in the period, though these were partially offset by higher operation and maintenance expenses as well as property tax.

Net property income (NPI) fell to S$166 million in Q1 FY2026, down 7.5 per cent from S$179.4 million in Q1 FY2025. By segment, however, Singapore NPI expanded 2.9 per cent, led by VivoCity’s 6 per cent NPI growth.

Sharon Lim, chief executive of MPACT’s manager, said that VivoCity “maintained outstanding all-rounded performance” despite ongoing asset enhancement works. She also noted that a key tenant at Mapletree Business City renewed its lease ahead of expiry, “underscoring tenant confidence and reinforcing overall stability”.

For Q1 FY2026, the amount available for distribution to unitholders fell 3.6 per cent to S$106.8 million, from S$110.8 million in the year-ago period.

The manager said that macroeconomic uncertainty and a lack of clarity around the US Federal Reserve’s rate-cutting cycle are adding complexity to the overall outlook.

It added that Singapore will “remain as MPACT’s anchor of relative stability”, while the proposed divestment of two Japan properties reflects its “active portfolio management strategy”.

“While modest in scale, (the proposed divestment) allows us to mitigate single-tenant risk and optimise management efficiency,” Lim added.

“With divestment proceeds directed towards debt repayment, MPACT will also benefit from further improvement in financial resilience. Post-divestment, Singapore continues to be our core market, accounting for over 50 per cent of MPACT’s assets under management.”

Units of MPACT closed up 1.6 per cent or S$0.02 at S$1.31 on Wednesday.