For 2Q 2024/25, Mapletree Pan Asia Commercial Trust (SGX: N2IU), or MPACT, reported a distribution per unit (DPU) of S$0.0198, 11.6% lower than previous year. It is disappointing as I was expecting that they could at least match last quarter’s DPU of S$0.0209.
Beyond the DPU, there is more uncertainties in MPACT’s overseas portfolio. The occupancy is trending downwards and rental reversion continues to be negative. It does not look like this will improve in the short term, especially for China and Japan properties.
With less than 10% from the pre-COVID lease to renew, Festive Walk might see positive rental reversion by the end of the year though.
The positive remains with VivoCity, which has only a slight dip in tenant sales mostly due to increased downtime from Basement 2 enhancement and tenant changeovers.
As for Frasers Centrepoint Trust (SGX: J69U), or FCT, it managed to maintain the same DPU of S$0.0602 as previous year.
Its occupancy stays strong at 99.7% and rental reversion for FY 2024 is up by 7.7%. With the enlarged stake in NEX and completion of asset enhancement initiatives (AEI) at Tampines 1, it should be able to continue to deliver another set of robust results next year.
Despite the weaker than expected performance from MPACT, I will continue to hold on to my current stake, primarily due to the strong performance of its Singapore properties. I will continue to monitor their next two quarters performance before making any further decision.
While I currently have no intention to increase my stake in FCT, I might consider if opportunity arises.
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