The manager of Mapletree North Asia Commercial Trust (MNACT) has reported gross revenue of $103.0 million for the 1QFY2021/2022 ended June, 10% higher than gross revenue of $93.7 million for the same period the year before.
Net property income (NPI) stood 14.3% higher y-o-y at $78.3 million, attributable to the lower rental reliefs of $4.0 million granted to retail tenants at Festival Walk in the 1QFY2021/2022, compared to the $17.9 million in the 1QFY2020/2021.
The higher NPI was also due to the higher average occupancy at IXINAL Monzen-nakacho Building (MON).
The increase was, however, offset by lower average rental rates at Festival Walk mall and Gateway Plaza.
There was also a maiden contribution from Hewlett-Packard Japan Headquarters following MNACT’s acquisition on June 18.
Gross revenue and NPI for Festival Walk during the period stood 18.4% and 25.5% higher y-o-y respectively.
Gateway Plaza saw 5.3% and 4.5% y-o-y growth in gross revenue and NPI.
Sandhill Plaza and The Pinnacle Gangnam continued to deliver stable performances, reflected by their high occupancy rates.
MNACT’s properties in Japan remained resilient with an increased average occupancy rate of 98.2% as at June 30, compared to 97.8% as at March 31.
As at June 30, the REIT’s portfolio committed occupancy level stood at 97.4%.
“During the quarter, we had completed the acquisition of a high-quality office property located in Tokyo. The property, which is on a long-term lease to Hewlett-Packard Japan, is expected to provide a stable income stream for MNACT and will enhance the resilience of MNACT’s portfolio,” says Cindy Chow, CEO of the manager.
“On Festival Walk, we are encouraged to see improving footfall and retail sales at the mall, with the easing of restrictive measures in Hong Kong SAR as the city saw daily infections falling. Accordingly, a lower quantum of rental reliefs was granted in 1QFY2021/2022 compared to a year ago as well as the preceding quarter.”
The repair works, arising from the damage incurred during the social incidents in Hong Kong SAR in November 2019, are continuing at the mall. We have extended rental reliefs to tenants affected by the repair works. As the Covid-19 situation continues to improve, and with repair works targeted to be completed by end 2021, we expect the quantum of rental reliefs to be granted and the impact on MNACT’s revenue to be further reduced,” she adds.
Units in MNACT closed flat at $1.03 on July 26.
Photo: MNACT
