0351 GMT - Singapore-based Mapletree Pan Asia Commercial Trust will continue to face headwinds overseas, Morningstar analyst Xavier Lee says in a note. The REIT's management expects the office market in Japan and China to remain challenging in the near term, with downside risks to occupancy rates, Lee writes. For the REIT's China properties, management expects negative rental reversions to worsen from the negative 2.9% in the first nine months of fiscal 2025 due to weakness in market rents, Lee says. However, he adds that the REIT now offers a fiscal 2026 distribution yield of 7%, making it an attractive option for investors who are willing to weather the downcycle. Morningstar maintains the REIT's fair-value estimate of S$1.60. Units are 0.8% lower at S$1.19. (amanda.lee@wsj.com)
(END) Dow Jones Newswires
January 26, 2025 22:51 ET (03:51 GMT)
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