Mapletree Pan Asia Commercial Trust Records Health Occupancy For Its Singapore Office & Business Park Assets

Office Finder Team

February 1, 2023

Singapore

SINGAPORE – Despite slowing market conditions and global economic uncertainty, Mapletree Pan Asia Commercial Trust (MPACT) stated that its office and business park properties in Singapore “achieved healthy operating performance”, according to Singapore Exchange (SGX) filings published on Tuesday evening (31 January, SGT).

For instance, the Singapore-listed real estate investment trust (S-REIT) disclosed that the committed occupancy at Mapletree Business City (MBC) stood at 95 percent in Q3 FY22/23, likewise for the trust’s other office and business park assets in the city-state.

While the tenant retention rate in MBC was only 53.4 percent during the period under review, it reached 85.5 percent for its other office and business park properties here.

Mapletree Business City also registered a rental reversion of 4.1 percent, while its 1.1 percent for the S-REIT’s other office and business park properties in Singapore.

As of 31 December 2022, MPACT’s portfolio committed occupancy was at 95.5 percent, whereas the weighted average lease expiry (WALE) for its office/business park leases was 2.9 years.

“Global economic uncertainties have heightened and have affected overall leasing activities. Notwithstanding, we closed the quarter by locking in positive rental uplifts across all markets except Greater China, and achieved a healthy portfolio committed occupancy,” commented the CEO of MPACT’s manager, Sharon Lim.

Moreover, the overall amount of office and business park space renewed or re-let by Mapletree Pan Asia Commercial Trust reached 594,000 sq ft in FY2022 to FY2023. For the next fiscal year, it stands at 187,000 sq ft so far.

MPACT also revealed that its net property income (NPI) surged by 76.8 percent to S$179.4 million on an annual basis in Q3 FY22/23, while its gross revenue spiked by 84 percent to S$239.8 million.

“The growth was mostly driven by the full quarter contribution from the properties acquired through the merger and higher earnings from its Singapore portfolio,” wrote the S-REIT in its filing.