Mapletree Pan Asia Commercial Trust (MPACT) has reported distribution per unit (DPU) of 2.05 cents for its 3QFY2026, up 2.5% y-o-y. This brings its total payout for the nine months ended Dec 31, 2025 to 6.07 cents.
MPACT managed to pay a higher DPU despite a slightly lower net property income as it enjoyed 10% drop in financing costs. NPI for the quarter ended Dec 2025 was down 1.2% y-o-y to $164.9 million, while revenue was down 1.9% to $219.4 million, mainly due to lower contributions from two properties in Japan that had been divested.
MPACT's Singapore assets remained its anchor, with gross revenue and NPI up by 3.5% and 5.3% respectively, led by VivoCity following the completion of its Basement 2 asset enhancements.
In addition, MPACT enjoyed higher contributions from Mapletree Business City and at its other Singapore properties too.
Over at Festival Walk, MPACT's mall in Hong Kong, it was able to achieve full committed occupancy amid broader challenges of the Hong Kong retail market. However, tenant sales dropped 2.9% y-o-y even with shopper traffic up 4.5%. Rental reversion was down 10.5%. In contrast, VivoCity was up 14.7%.
On Dec 10, MPACT announced the divestment of the office component of Festival Walk for HK$1.96 billion, or $328.1 million, a level in line with its independent valuation.
Proceeds from the sale will be used to reduce debt and is targeted for completion in February.
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Following the sale, MPACT will still own the retail component valued at HK$21.8 billion, or $3.74 billion.
With this divestment, MPACT’s portfolio will comprise 15 commercial properties across five key gateway markets of Asia, with a total lettable area of 10.2 million square feet independently valued at $15.5 billion.
“This quarter’s results demonstrate the strength of our Singapore portfolio and the benefits of disciplined capital allocation," says Sharon Lim, CEO of the manager.
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"VivoCity’s performance anchors our operations, while lower finance expenses shows the value created from strategic divestments and debt reduction," she says.
Lim maintains that the proposed divestment of the office component of Festival Walk reflects MPACT's active portfolio repositioning to strengthen financial flexibility and long-term resilience.
"Beyond portfolio optimisation, we remain focused on operational fundamentals and tenant retention. The successful renewals of two top 10 tenants underscore our commitment to cashflow stability as we navigate overseas headwinds,” she adds.
MPACT units closed at $1.47 on Jan 29. It is up 21.49% in the past year.
