Mapletree Pan Asia Commercial Trust Earnings: Results In Line; Retain SGD 1.82 Fair Value Estimate

Mapletree Pan Asia Commercial Trust’s fiscal 2023 (ended March) net property income rose 62.6% year on year to SGD 632 million, on the back of the merger with Mapletree North Asia Commercial Trust and a higher contribution from its Singapore properties. The trust’s flagship asset, VivoCity, achieved a record SGD 1.05 billion of tenant sales, which exceeded prepandemic levels. The relaxation of COVID-19 measures in Hong Kong as well as the reopening of the China border also drove the recovery of Festival Walk, which saw year-on-year shopper traffic and retail sales growing 276% and 77%, respectively, in March. As the performance was in line with our expectations, we retain our SGD 1.82 fair value estimate. We continue to expect MPACT's retail assets to benefit from the reopening of China, which drives travel recovery, but we think the trust is fairly valued at current prices with the positive outlook largely priced in.