MPACT Earnings: VivoCity to Anchor Near-Term Performance; Units Undervalued

Mapletree Pan Asia Commercial Trust’s fourth-quarter fiscal 2025 (ended March) results were in line with our expectations. Net property income fell 7.4% year on year to SGD 169.5 million due to the divestment of Mapletree Anson in July 2024. Positively, the net finance cost was 9.4% lower as proceeds from the divestment were used to pay down debt. However, overall distribution per unit was still 14.8% lower. After rolling our model and fine-tuning our assumptions, we retain our fair value estimate of SGD 1.60. The trust remains undervalued, trading at an attractive fiscal 2026 dividend yield of 6.7%. We continue to expect VivoCity to underpin the trust’s near-term earnings as it navigates multiple headwinds faced by its overseas assets.