2024 Second Quarter Review: Mapletree Pan Asia Disappoints, Frasers Centrepoint Delivers
In the latest financial reports, Mapletree Pan Asia Commercial Trust (MPACT) saw a decline in distribution per unit (DPU) to S$0.0198, a drop of 11.6% from the previous year. This was below expectations, especially considering the hope for at least a match with the previous quarter’s DPU of S$0.0209.
There are uncertainties looming over MPACT’s overseas portfolio, with occupancy rates on a downward trend and negative rental reversion, particularly in China and Japan properties. However, there is a glimmer of hope for Festive Walk, with potential positive rental reversion expected by the year’s end.
On the other hand, Frasers Centrepoint Trust (FCT) managed to maintain a consistent DPU of S$0.0602 compared to the previous year. With a strong occupancy rate of 99.7% and a 7.7% rental reversion for FY 2024, FCT is on a positive trajectory, especially with the recent stake in NEX and completion of asset enhancement initiatives at Tampines 1.
Despite the challenges faced by MPACT, the strong performance of its Singapore properties provides a reason to hold onto current stakes. Continuing to monitor performance over the next quarters before making further decisions is prudent. As for FCT, while there are no plans to increase stakes currently, opportunities may be considered in the future.
In summary, while MPACT’s performance may have been disappointing, the resilience of FCT showcases promise for the future. Stay tuned for more updates and analysis from Towards Financial Independence. Subscribe to get the latest posts delivered to your email and stay informed on the latest developments in the finance industry.
