Mapletree North Asia Commercial Trust reported Monday its fiscal first quarter net property income increased 14.3 percent on-year to S$78.28 million on lower rental relief given to retail tenants at the Festival Walk property compared with a year earlier.
Rental relief in the quarter was S$4 million, down from S$17.9 million in the year-ago period, the trust said in a filing to SGX.
In addition, the IXINAL Monzen-nakacho Building posted higher average occupancy, partly offset by lower average rental rates at Festival Walk mall and Gateway Plaza, MNACT said, adding the Hewlett-Packard Japan Headquarters property had its first contributions to earnings after its acquisition in mid-June.
Gross revenue for the quarter ended 30 June rose 10 percent on-year to S$103.03 million, the trust said.
“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,” Cindy Chow, CEO of the trust’s manager, said in the statement.
“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,” she added.
She noted repair works at the areas of the mall damaged in November 2019 are continuing, with affected tenants receiving rental relief; repair works are expected to be completed by the end of this year.
The trust’s committed occupancy level across its five properties was at 97.4 percent at end-June, the statement said.
MNACT has 13 properties in its portfolio, across Beijing, Hong Kong, Japan, Seoul and Shanghai, with S$8.4 billion in assets under management as of end-June.