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MNACT posts 13.3% fall in Q3 DPU to 1.671 S cents

MAPLETREE North Asia Commercial Trust (MNACT) reported on Friday that its distribution per unit (DPU) for the third quarter fell 13.3 per cent to 1.671 Singapore cents, down from 1.927 cents a year ago.

The Q3 DPU included a distribution top-up to mitigate the impact of Festival Walk's closure on distributable income.

The mall in Hong Kong was damaged in recent protests and was closed from Nov 13 to Jan 15, during which time MNACT was unable to collect rental from the retail tenants. The office tower was closed for a shorter period, from Nov 13 to 25, and rental collection resumed on Nov 26.

Revenue for the three months ended Dec 31 was down 36.3 per cent to S$67.28 million, on the back of lower revenue from Festival Walk mall, lower revenue from a Japan property that was converted to multi-tenancies from single tenancy, and lower revenue from Gateway Plaza due to lower average occupancy.

Net property income (NPI) fell 40 per cent to S$50.8 million, and distributable income shrank 12.5 per cent to S$53.4 million.

For the nine months ended Dec 31, DPU was 5.558 cents, down from 5.734 cents a year ago.

Revenue shrank 8.9 per cent to S$277.7 million and NPI dipped 10 per cent to S$220.6 million, mainly due to lower revenue from Festival Walk. This was partially offset by full nine-month contribution from the Japan properties, whose acquisition was completed on May 25, 2018.

Distributable income edged down 0.8 per cent to S$177.2 million.

Aside from the Festival Walk mall in Hong Kong and its portfolio of properties in Japan, MNACT also has office properties in Beijing and Shanghai. The Reit manager said that slower economic growth and trade tensions continued to drag on leasing activities in those properties, with revenue falling on lower average occupancy rates and the yuan's lower average rate.

The Festival Walk top-ups were to be paid out over three quarters (Q3 and Q4 FY19/20, and Q1 FY20/21), but as the mall reopened earlier than expected, MNACT will not have a distribution top-up in Q1 FY20/21.

Unitholders will receive their Q3 distribution on March 10. The books closure date is Jan 28 at 5pm.

MNACT units closed up one Singapore cent or 0.81 per cent to S$1.24 on Friday before the results were announced.