Mapletree Commercial Trust Q2 2027 Earnings Recap

MPACT’s roughly flat share reaction, up 1.8%, reflects a mixed first half: Singapore growth and lower financing costs partly offset falling revenue and NPI, with overseas properties under pressure. China and Hong Kong conditions, longer downtime and negative rental reversions remain key concerns.

Key Takeaways

• First-half gross revenue fell 5.3% year on year to $413.9 million; NPI declined 6.5% to $308.3 million. Second-quarter revenue and NPI were down 5.0% and 6.3%, respectively.
• Singapore gross revenue grew 1.2% in the first half. VivoCity revenue rose 7.5% and NPI 6.9%, benefiting from the B2 AEI; VivoCity reported 15% rental reversion so far this year.
• Overseas contributions were hurt by the Fujitsu Building nonrenewal, challenging conditions in China and Hong Kong, longer downtime and a stronger Singapore dollar against the yen and Hong Kong dollar. China leasing remains challenging, while Festival Walk rental reversions remain weak.
• First-half DPU was $0.0390; second-quarter DPU was $0.0194. Lower finance expenses—down 14.4% to $83.4 million for the first half—partly cushioned weaker property contributions.
• MBC committed occupancy increased from 94.3% to 95.4%, with new leases expected to contribute progressively from the third quarter. Aggregate leverage was 38.1%, and interest coverage was 3.3x.