Mapletree Pan Asia Commercial Trust (MPACT) is a leading Singapore-based real estate investment trust with a high-quality and diversified portfolio of commercial properties across key gateway markets in Asia. As at 31 March 2025, MPACT owns 17 commercial properties spanning the office, retail, and business park segments, located in five core markets: Singapore, China, Japan, Hong Kong, and South Korea. Its portfolio comprises approximately 10.4 million square feet of lettable area and is valued at S$15.96 billion, anchored by flagship assets such as VivoCity and Mapletree Business City in Singapore and Festival Walk in Hong Kong.
To gain a deeper understanding of MPACT’s recent performance and strategic priorities, I attended its FY2024/25 AGM. The AGM provided meaningful insights into the REIT’s efforts to sharpen its focus on core Singapore assets, pursue disciplined capital recycling, and maintain financial resilience, even as it navigates macroeconomic headwinds and regional market uncertainties. Here are seven things I learnt from the MPACT 2025 AGM.
1. MPACT’s portfolio valuation is anchored by its Singapore assets amidst overseas headwinds. Despite a volatile macroeconomic backdrop, MPACT increased its overall portfolio valuation by S$225.5 million year-on-year to S$15.96 billion as at 31 March 2025. Singapore proved to be an anchor of stability, contributing a S$660 million uplift, or 7.9% year-on-year. The increase was led by VivoCity, whose valuation surged 14.8% to S$3.86 billion, supported by robust rental reversions, sustained tenant sales, and tighter capitalisation rates reflecting strong investor demand for prime retail assets. Other Singapore properties including Mapletree Business City I & II, mTower, and Bank of America Harbourfront also posted modest valuation gains of between 0.5% and 6.1%, underpinned by high occupancy, strong tenant profiles, and efficient cost management.
In contrast, the overseas portfolio recorded a S$434.5 million decline, equivalent to a 5.9% drop in value. This was primarily driven by currency depreciation against the Singapore dollar and operational challenges specific to each market. Festival Walk in Hong Kong saw a 4.3% decline in SGD terms as outbound travel and cross-border spending affected retail performance. In China, Gateway Plaza and Sandhill Plaza experienced valuation reductions of 6.1% and 7.6% respectively, despite maintaining above-market occupancy, due to rental pressure and investor caution.
The valuation of MPACT’s Japan properties declined by 9.4% in local currency, primarily due to subdued leasing demand in the Makuhari cluster. CEO Sharon Lim noted that MPACT is actively evaluating strategic options to address the challenges in this area. She also reassured unitholders that the valuation adjustments are non-cash in nature and do not impact the trust’s distributable income.
In Korea, The Pinnacle Gangnam in Seoul was a relative bright spot, recording a 1.7% increase in KRW valuation on the back of strong leasing outcomes.
Overall, this reinforces Singapore’s pivotal role in providing valuation resilience across MPACT’s diversified portfolio, even as the REIT actively manages and recalibrates its overseas exposure in response to market volatility.
2. One unitholder raised concerns about MPACT’s growing reliance on its Singapore portfolio to uphold overall valuation, questioning whether flagship assets like VivoCity still have meaningful upside. In response, management emphasized that Singapore remains a core pillar of stability and there is still substantial room for growth amongst its Singapore properties. Management highlighted ongoing efforts to unlock further value through asset enhancement initiatives (AEIs), such as optimising underutilised spaces and reconfiguring low-traffic areas to drive higher footfall and rental yield. Specifically, for VivoCity, management pointed to long-term structural tailwinds including the development of the interim cruise terminal and the upcoming Greater Southern Waterfront housing projects these tailwinds are expected to strengthen the asset’s catchment and retail relevance in the years ahead.
Management also took the opportunity to update unitholders on the ongoing AEIs at VivoCity’s Basement 2. Upon completion of the two-phase project, the enhancement is expected to deliver a return on investment exceeding 10%, reflecting the management’s continued focus on value creation through strategic AEIs to maximise the value of the portfolio’s assets.
3. MPACT’s revenue dipped 5.1% year-on-year to S$908.8 million. Net property income (NPI) also reduced by 6.1% to S$683.5 million. This is primarily attributed to reduced contribution following Mapletree Anson’s divestment and lower contribution from the overseas assets. These were further impacted by the strength of the Singapore dollar, which weighed on foreign currency income when translated.
On a comparable basis, Singapore assets delivered S$5.4 million in higher revenue and S$4.7 million in higher NPI year-on-year, driven by the consistent performance of core properties such as VivoCity and MBC. In FY24/25, Singapore contributed 60% of total gross revenue and 61% of total NPI, highlighting its role in cushioning the impact of overseas volatility. Management’s continued emphasis on local asset enhancement and stability has helped maintain income resilience amid broader regional challenges.
4. MPACT’s distributable income and distributable income per unit (DPU) was also down 9.7% and 10% respectively. Distributable income stood at S$423 million while DPU is at 8.02 cents. As of 31 March 2025, MPACTs yield stands at 6.4% which is ahead of the FTSE Straits Times REIT Index.
5. MPACT’s overall portfolio occupancy remained relatively stable at 89.6%, despite a moderation from 96.1% in the previous year. Notably, assets in Singapore, Hong Kong, and China recorded slight improvements in occupancy. In South Korea, Pinnacle Gangnam saw a further uplift, with occupancy rising from 99.1% to 99.9% during the year.
The overall drop in portfolio occupancy was primarily attributed to challenges faced by the Japanese portfolio specifically in the Makuhari submarket of Chiba affecting MPACT’s three properties in that area, which saw the loss of key anchor tenants. Several unitholders have therefore expressed concerns over the plans of MPACT’s Japan portfolio questioning the management on their plans. Lim acknowledged the situation, assuring unitholders that the Japan team is actively working to secure replacement tenants. She also emphasized that the Japanese assets account for only a small portion of the total portfolio at approximately 7% and therefore have a limited impact on MPACT’s overall performance.
Management has also ensured that the portfolio has a well staggered lease expiry profile with a weighted average lease expiry by monthly gross income of 2.2 years across its portfolio. This balanced lease expiry profile helps MPACT to enhance the portfolio’s resilience and be mitigated against tenancy risks.
6. Amid market uncertainty, MPACT continues to exhibit disciplined capital management, bolstering its financial position. MPACT’s financial position strengthened in FY24/25 following the divestment of Mapletree Anson, with proceeds used to reduce debt. This lowered the gearing ratio to 37.7% from 40.5% in FY23/24 and brought net borrowings down to S$5.99 billion. NAV per unit rose 1.7% to S$1.78, while interest expenses fell 3.1% to S$218.4 million, aided by a higher proportion of fixed-rate debt at 80%. MPACT has also ensured that interest coverage ratio remained stable at 2.8 times showing capital discipline.
The REIT extended its average debt maturity to 3.3 years and maintained a stable all-in cost of debt at 3.51% per annum. Around 90% of expected distributable income is derived from or hedged into SGD, mitigating forex risk. MPACT also issued S$200 million of seven-year green notes at 3.104%, enhancing funding certainty and sustainability credentials.
7. MPACT continues to manage its debt prudently, maintaining a well-balanced maturity profile and strong interest coverage. With a well-staggered debt profile with no more than 23% debt due in any financial year and S$1.2 billion in available liquidity, MPACT remains well-positioned to navigate interest rate volatility while preserving financial flexibility and income stability.
MPACT’s disciplined approach to capital management underpins the trust’s resilience amid macroeconomic uncertainty. As MPACT continues to focus on long-term value creation, its strong financial foundation provides a solid platform for sustainable growth.
The fifth perspective
MPACT has reinforced its position as a well-managed and resilient REIT amid ongoing challenges in Asian property markets. The 2025 AGM highlighted management’s focused approach anchoring performance through strong Singapore assets like VivoCity, while actively addressing headwinds in Japan and Hong Kong.
While DPU and distributable income declined due to currency fluctuations and strategic repositioning, the impact has been effectively contained through stable occupancy rates, strong contributions from core Singapore assets, and disciplined cost and capital management. MPACT’s financial discipline remains a core strength, demonstrated by proactive debt reduction, a high proportion of fixed-rate borrowings, and a lower gearing ratio. This helps ensure the REIT remains resilient through macroeconomic headwinds in the current environment.
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