MPCMF - Mapletree Pan Asia Commercial Trust (MPCMF) Q4 2024 Earnings Call Transcript

2024-04-26 15:27:02 ET

Mapletree Pan Asia Commercial Trust (MPCMF)

Q4 2024 Earnings Call Transcript

April 23, 2024 09:00 PM ET

Company Participants

Janica Tan - Chief Financial Officer

Wee Leong Koh - Co-Head, Investment and Asset Management

Sharon Lim - CEO

Chow Mun Leong - Co-Head of Investments and Asset Management

Conference Call Participants

Terence Khi - JP Morgan

Rachel Tan - DBS

Brandon Lee - Citigroup

Tan Xuan - Goldman Sachs

Joy Wang - HSBC

Derek Tan - DBS

Wong Yew Kiang - CLSA

Jonathan Koh - UOB KayHian

Derek Chang - Morgan Stanley

Presentation

Operator

Good morning, Analyst, Investors and Members of the Public. Welcome to Mapletree Pan Asia Commercial Trust, or MPACT Analyst Briefing and Live Webcast for the Fourth Quarter and New Financial Year 2024.

I'm Li Yen and have the pleasure of hosting today's results briefing. Allow me to introduce our speakers for today's briefing. They are Ms. Sharon Lim, Chief Executive Officer of MPACT; Ms. Janica Tan, Chief Financial Officer of MPACT; Mr. Chow Mun Leong and Mr. Koh Wee Leong, our co-Head of investments and Asset Management. They will be presenting our financial results, providing key business development and sharing market insights. Pulling the presentation, we'll open the floor for a Q&A session where we invite you to ask questions and seek further clarification on our results.

Without further ado, I will hand the floor over to our CFO, Janica.

Janica Tan

Good morning. Thank you for joining us today. Before we get into the details of our full year FY ‘23, ‘24 results, I would like to give more colors to the three key teams shipping our broad business environment. So, first is the global market has been very much affected by the ongoing geopolitical conflict and economy uncertainty. Second, rates including impact are may be getting through a new era of high interest rates following that 11 rate hikes in the last two year in an attempt to curb ramp inflation. And this significantly impacted cost of financing for banks and businesses.

Third, financial market has been volatile. Forex fluctuation has particularly impacted rates with overseas exposure affecting their earnings, distribution and asset values when they are converted back to Sing dollars. Despite these hurdles, MPACT has shown resilience with our teams adapting their asset and financial management approaches to make these challenges hit on. For fourth quarter, FY ‘23, ‘24 MPACT’s gross revenue, MPI and VPU.

Overcoming broad market head winds, including Forex challenges and high-interest rates. Broad revenue of S$239.2 million was 2.6% higher as compared to last year same period and NPI was S$183.1 million, 3.2% higher year-on-year. And this growth was primarily driven by Singapore Portfolio, which delivered positive contributions. Hong Kong and Japan delivered daily performance on a local currency basis. Whereas China had underperformed as compared to last year due to lower occupancy, property operating expenses were 0.3% higher at S$56.1 million, mainly due to higher staff cost and property management fee offset by lower utility expenses, and on a constant currency basis the year-on-year growth in gross revenue and MPI would have been higher at 3.8% and 4.4% respectively.

Finance expense for the quarter were 10.8% higher at S$56.4 million as compared to fourth quarter last year. And this was mainly due to higher interest rates on both Hong Kong dollar and Sing dollar borrowing. And this was partly offset by the Hong Kong dollar and CNH swap during the financial year. Amount available for distribution rose 2.2% year-on-year to S$120.5 million, mainly driven by higher MPI, which more than cause increased interest costs. And consequently, 4Q EPU was S$2.29 up 1.8% year-on-year.

This is the year-on-your contribution by properties. Singapore properties contributed S$6.6 million or 6.3% of higher MPI with better performance across all properties. Whereas Japan and China were impacted by the adverse -- movement and China lower occupancy contribution for festival work -- On the full year, gross revenue and MPI wrote 16% and 15.2% to S$958.1 million and S$728 million respect fees. This increase was nearly due to the four-year contribution from the over two assets acquired in the merger. Although the merger gains were tempered by a stronger in dollar against our foreign currency. ...

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