Wednesday, February 28, 2024



My order for 5,000 shares of Mapletree Pan Asia Commercial Trust (SGX:N2IU) is filled today.

This will bring my existing holdings of MPACT to 20,000 shares.

The share price of MPACT has weakened severely ever since its merger with Mapletree North Asia Commercial Trust to lose its status as a pure Singapore Greater Southern Waterfront commercial property asset play.

The last time I increased my investment in MPACT was in July 2022 during its preferential offering at $2.0039 to raise funds for the merger with MNACT. I bought from open market 4,000 shares at $1.78 instead of subscribing to the preferential offer.

I have long been wanting to increase my investments in MPACT especially after every visit to the ever crowded Vivo City. However, I have not visited its other APAC assets such as Festival Walk in Hong Kong, Gateway Plaza in China and commercial properties in Japan which will require much more time to recover from tourism, retail and office space demand. 

I sensed opportunity this time because my investment is driven by passive income for the long-term horizon and attracted by great value of paying below the NAV of around $1.76. Its share price has rebounded from the lows of $1.27 in Oct 2023 on the back of potential interest rate cuts in the short future. Generally, at $1.30s, MPACT is below its fair value and historical valuation.

I believe MPACT is still a high quality income producing Reit which is able to pay dividend consistently above 6% for the next few years or even decade.

Today's high interest rate environment will not last forever. The FED will most likely start to reduce interest rates later this year to avoid any onset of economic recession and interest rates will taper to around 2% next year. Lower interest rates will certainly benefit Reits such as MPACT by reducing financial costs and improving net property income for more distributions as dividends to investors like us.

Even though MPACT will continue to suffer in terms of price weakness and volatility in the short-term, I am optimistic that in the long run, its share price will recover above $1.60 and slowly climb towards its NAV of $1.80.

Thanks for reading. Stay safe and remain strong always!

With love & peace,

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