CGS International has cut the target price for Mapletree Pan Asia Commercial Trust (MPACT) to $1.58 from $1.59. The main reason? Festival Walk mall in Hong Kong isn’t recovering as quickly as expected. Key Points: • Why the Cut?: Sales in Hong Kong dropped by 6.1% year-on-year as of May 2024, hitting sectors like food, beverages, and clothing hard. • New Forecasts: Analysts now expect Hong Kong’s retail growth to decrease by 6.0% in FY2024 instead of growing by 3.0%. • Local Shopping Trends: More Hong Kong residents are shopping in Shenzhen on weekends, affecting local sales. What This Means: • Challenges Ahead: Festival Walk could see more shifts in local spending with fewer tourists. • Lease Renewals: About 31.7% of the mall’s leases are up for renewal in the first quarter of FY2025. The supermarket tenant TaSTe, which accounts for around 27% of expiries, just had its lease expire in June. Ups and Downs: • Positive: High occupancy at Festi...