THE manager of Mapletree Pan Asia Commercial Trust : N2IU -1.13% (MPACT) said that the real estate investment trust (Reit) will be issuing S$150 million of senior green notes priced at a fixed rate of 4.25 per cent annually.

 

These notes, which are under its S$5 billion Euro Medium Term Securities Programme established in September 2022, will be issued on Mar 29, 2023 and mature on Mar 29, 2030.

 

The proceeds raised from this issuance will be used by MPACT and its subsidiaries to finance or refinance, in whole or in part, eligible green projects in accordance with the company&rsquo s green finance framework.

 

Ratings agency Moody&rsquo s has assigned a &ldquo Baa1&rdquo rating to these notes due to the company&rsquo s &ldquo strong operating performance through the years from a portfolio of good-quality assets in Singapore and North Asia, and track record of prudent financial management as demonstrated by its funding of acquisitions with a balanced mix of debt and equity&rdquo .

 

Moody added that MPACT&rsquo s credit quality is supported by its financially strong sponsor, Mapletree Investments, and that the Reit can leverage its sponsor&rsquo s operational track record, expertise and strong network of relationship banks.

 

DBS and OCBC have been appointed as joint lead managers and joint bookrunners for the issue of the notes.

THE manager of Mapletree Pan Asia Commercial Trus : N2IU +2.91%t (MPACT) said that Mapletree North Asia Treasury Company had fully redeemed S$117.8 million of 3.5 per cent notes due on Wednesday (Mar 22).

 

These were issued in March 2016 under the US$1.5 billion Euro Medium Term Securities Programme established in May 2013.

 

MPACT had redeemed S$2.3 million of these notes in August 2022.

 

MAPLETREE Pan Asia Commercial Trust&rsquo s (MPACT) distribution per unit (DPU) stayed flat at S$0.0242 for the third quarter ended Dec 31, 2022, unchanged from a year ago. This was due to higher finance costs, its manager said in a bourse filing on Tuesday (Jan 31).

 

Gross revenue was up 84 per cent to S$239.8 million for the quarter, from S$130.3 million a year ago.

 

Net property income (NPI) grew 76.8 per cent on the year to S$179.4 million for the quarter, from S$101.5 million

 

The growth in gross revenue and NPI was mostly driven by the full-quarter contribution from the properties acquired through the merger and higher earnings from the trust&rsquo s Singapore portfolio, its manager said.

 

Its Singapore portfolio includes core asset VivoCity, which registered 7.9 per cent rental uplift on a year-to-date FY2022/2023 basis. Driven by strong festive spending, the mall&rsquo s third-quarter tenant sales for FY2022/2023 reached S$300.1 million, well surpassing pre-Covid levels, said the manager&rsquo s chief executive officer Sharon Lim.

 

The merger of Mapletree Commercial Trust (MCT) and Mapletree North Asia Commercial Trust (MNACT) to form MPACT was completed on Jul 21, 2022.

 

Meanwhile, the amount available for distribution rose 59.7 per cent year on year to S$128.3 million, from S$80.3 million.

 

A distribution of S$0.0242 per unit for the period Oct 1 to Dec 31, 2022 will be paid on Mar 15 after the record date of Feb 8.

 

For the full year, gross revenue was up 58.5 per cent to S$592.9 million. NPI was up 56 per cent to S$454.6 million, while the amount available for distribution was up 45.6 per cent to S$330.3 million.

 

Full-year DPU rose 8.1 per cent to S$0.0736. The amount of S$0.0736 includes a clean-up distribution of S$0.0304 per unit for the period from Apr 1 to Jul 20, 2022, paid on Aug 25, 2022.

 

For FY2022/2023 year to date, MPACT renewed or relet about 1.9 million square feet of net lettable area. Its manager noted that all markets except Greater China registered positive rental uplifts, with VivoCity and The Pinnacle Gangnam achieving &ldquo respectable&rdquo reversion rates of 7.9 per cent and 14.2 per cent respectively.

 

MPACT&rsquo s committed occupancy across its portfolio was 95.5 per cent as at Dec 31, 2022. The weighted average lease expiry (Wale) for the trust&rsquo s retail and office as well as business park leases was 2.1 years and 2.9 years respectively, translating into an overall portfolio Wale of 2.6 years.

 

Its manager said that the debt maturity profile remains well-spread, with no more than 22 per cent of debt expiring in any financial year. Lim noted that despite heightened global economic uncertainties affecting overall leasing activities, MPACT has closed the quarter by &ldquo locking in positive rental uplifts across all markets except Greater China, and achieved a healthy portfolio committed occupancy of 95.5 per cent&rdquo .

 

Looking ahead, she added, the operating environment is likely to remain rough with weaker global economic outlook, elevated energy prices and volatile interest rates. &ldquo We will continue to forge ahead with our proactive asset management approach, implement measures to protect our financial well-being, and seize the right opportunities to achieve a balance of risks and costs.&rdquo