MAPLETREE NORTH ASIA COMMERCIAL 
By For Immediate Release
Mapletree Greater China Commercial Trust's ("MGCCT") 3Q Available Distributable Income Exceeds Forecast by 16.6% Available Distribution per Unit of 1.5181 cents for period from 1 October to 31 December
2013 is higher than IPO Forecast2 by 16.6%
89% of the expiring leases3 in FY2013/2014 have been renewed or re-let with robust rental uplift
23 January 2014 - Mapletree Greater China Commercial Trust Management Ltd. ("MGCCTM" or the "Manager"), the Manager of Mapletree Greater China Commercial Trust ("MGCCT"), announced today an increase of 16.6% in Available Distribution per Unit ("DPU") to 1.518 cents for the period from 1
October 2013 to 31 December 2013 ("3Q FY2013/2014"), compared to the Forecast DPU of 1.302 cents. MGCCT's DPU for the period from the Listing Date at 7 March 2013 to 31 December 2013 ("YTD FY2013/2014") is 4.693 cents, exceeding the Forecast of 4.178 cents by 12.3%.
Summary of MGCCT's Results7 Mar to 31 Dec 2013 | 1 Oct to 31 Dec 2013 | |||||
Actual | Forecast | Variance | Actual | Forecast | Variance | |
Gross Revenue (S$'000) | 202,649 | 188,817 | 7.3% | 65,720 | 59,810 | 9.9% |
Net Property Income (S$'000) | 164,133 | 149,125 | 10.1% | 53,827 | 47,566 | 13.2% |
Available Distributable Income (S$'000) | 125,590 | 111,709 | 12.4% | 40,613 | 34,818 | 16.6% |
Available Distribution per Unit (cents) | 4.693 | 4.178 | 12.3% | 1.518 | 1.302 | 16.6% |
Annualised DPU (cents) | 5.71 | 5.08 | 6.02 | 5.17 | ||
Annualised Distribution Yield @ S$0.93 per Unit (IPO Price) @ S$0.795 per Unit (Closing price on 23 Jan 2014) | 6.1% 7.2% | 5.5% 6.4% | 6.5% 7.6% | 5.6% 6.5% |
Citigroup Global Markets Singapore Pte. Ltd., DBS Bank Ltd., Goldman Sachs (Singapore) Pte. and The Hongkong and
Shanghai Banking Corporation Limited, Singapore Branch were the Joint Global Coordinators, Underwriters and Issue
Managers for the Initial Public Offering ("IPO") and listing of MGCCT.
1 Represents a 100% distribution of MGCCT's income available for distribution from 1 October to 31 December 2013
2 The Forecast is derived from MGCCT's Initial Public Offering ("IPO") Prospectus dated 27 February 2013
3 By lettable area
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Mapletree Greater China Commercial Trust Management Ltd.10 Pasir Panjang Road, #13-01 Mapletree Business City, Singapore 117438
Tel 65 6377 6111 Fax 65 6273 2753 www.mapletreegreaterchinacommercialtrust.comCo. Reg No. 201229323R
Ms. Cindy Chow, Chief Executive Officer of MGCCTM, said, "We are pleased to announce that MGCCT has again turned in a strong performance in the third quarter, with available DPU exceeding the Forecast DPU by 16.6%. The strong set of financial results was on the back of better than expected rental rates for renewals and new committed leases, as well as lower property operating expenses. Almost all of the leasing activities due to expire by this financial year have been completed and we have seen healthy rental uplift for both Festival Walk in Hong Kong and Gateway Plaza in Beijing.
The continued strong financial results is a testament to Festival Walk's effective positioning as a popular one-stop shopping, dining and lifestyle centre and an affirmation of Gateway Plaza as a much sought- after Grade A office location amongst local and international corporations. We will continue to drive the performance of our properties through pro-active asset management, efficient cost management together with accretive asset enhancement initiatives."
Consistent Robust Performance by Festival Walk
Retail and office occupancy remained unchanged at 100% at Festival Walk, a landmark territorial retail mall with office component in Hong Kong. Shopper traffic and tenant sales grew 6.6% and 5.6% respectively, for the period from 1 April to 31 December 2013, over the same period in 2012. As of 31
December 2013, 100% of the retail expiring leases for FY2013/2014 have been renewed or re-let with rental uplift of 20%4. New shops opened in the quarter include international brands such as Ted Baker, Aldo and Benefit.
Gateway Plaza, a premier Grade A office building with a retail atrium in Beijing, continued to demonstrate strong results. As of 31 December 2013, 96.5%5 occupancy level was recorded while
78%6 of the leases expiring in this financial year have been committed. Positive rental reversions at
approximately 78%4 were achieved, reflecting buoyant demand for quality office spaces amidst tight supply in Beijing. These committed leases represented tenants from diverse trade sectors such as manufacturing, real estate, financial services and conglomerates.
Hong Kong's economy is forecasted to grow moderately given the uncertain global macroeconomic environment. For the first eleven months of 2013, total retail sales increased by 11.6% in value and
11.1% in volume as compared to a year ago7. The retail market in Hong Kong is expected to remain
healthy in the near term, supported by firm domestic demand and growth of inbound tourism. For
4 Rental uplift is computed based on effective rental rate of the expiring leases vs. effective rental rate of the contracted leases that were renewed or re-let over the lease term
5 As at 7 January 2014, committed occupancy level at Gateway Plaza was at 97.2%.
6 By lettable area
7 Based on latest figures released by Hong Kong Census and Statistics Department (2 January 2014)
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China, measures taken by the government to accelerate structural reforms are expected to lead to more measured and sustainable growth going forward. For the office sector in Beijing, consolidation and expansion activities as well as limited supply will continue to drive office space demand. As such, the Manager remains positive that MGCCT will continue to benefit from growth in both the Hong Kong retail sector and the Beijing office sector.
Capital Management and Distribution Policy
To mitigate interest rate risk, 71% of MGCCT's total debt of HK$11,455 million has been hedged until end of FY2015/2016 and 51% of the remaining debt hedged until end of FY2016/2017. With a well staggered debt profile with average maturity of 3.2 years, there is no refinancing risk until end of FY2015/2016. MGCCT has also put in place sufficient committed and uncommitted facilities to fund any upcoming requirements. To ensure stability of S$ distributable income, the Manager has further hedged 100% of HK$ distributable income for Year 1 and 90% for Year 2. In addition, the Manager has progressively converted RMB distributable income arising over the period to SGD.
As MGCCT's distribution policy is to distribute on a semi-annual basis, Available Distributable Income from 1 October 2013 to 31 December 2013 will be distributed together with Available Distributable Income from 1 January 2014 to 31 March 2014.
For further information, please contact:
Elizabeth Loo Suet Quan
Vice President, Investor Relations
Tel: +65 6377 6705
Email: elizabeth.loo@mapletree.com.sg
Website: www.mapletreegreaterchinacommercialtrust.com
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About Mapletree Greater China Commercial Trust
MGCCT is a Singapore real estate investment trust ("REIT") established with the investment strategy of principally investing, directly or indirectly, in a diversified portfolio of income-producing real estate in the Greater China region, which is used primarily for commercial purposes (including real estate used predominantly for retail and/or offices), as well as real estate-related assets. MGCCT is the first commercial REIT with properties in both China and Hong Kong, and its initial portfolio comprises Festival Walk, a premier retail and office building in Hong Kong, and Gateway Plaza, a premier Grade A office development with a retail atrium in Beijing. The two properties cover an aggregate gross floor area of approximately 2.4 million square feet and are valued at S$4.4 billion in aggregate8. MGCCT's investment mandate will include markets in Hong Kong, first tier cities in China (Beijing, Shanghai, Guangzhou and Shenzhen) and key second tier cities in China (Chengdu, Chongqing, Foshan, Hangzhou, Nanjing, Suzhou, Tianjin, Wuhan and Xi'an).
For more information, please visit www.mapletreegreaterchinacommercialtrust.com.
Mapletree Investments Pte Ltd ("Mapletree") is a leading Asia-focused real estate development, investment and capital management company. Headquartered in Singapore, Mapletree operates in
15 cities across seven countries with more than 1,600 employees. Its strategic focus is to invest in markets and real estate sectors with good growth potential in Asia. By combining its key strengths as a developer, an investor and a capital manager, the Group has established a track record of award - winning projects in Singapore and delivered consistent and high returns from across various real estate classes in Asia.
As at 31 March 2013, Mapletree owns and manages S$21.8 billion of office, logistics, industrial, residential and retail/lifestyle properties. Currently, it manages four Singapore -listed real estate investment trusts (REITs) and five private equity real estate funds, which together hold a diverse
8 The valuation is based on valuation carried out by Knight Frank for Festival Walk, Hong Kong and CBRE HK Limited for
Gateway Plaza, Beijing, as disclosed in MGCCT's IPO Prospectus dated 27 February 2013.
FX Rate: S$1 = HK$ 6.1694 and S$1 = RMB 4.8814
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portfolio of assets in Singapore and throughout Asia. The Group has also established an extensive network of offices in Singapore, China, Hong Kong SAR, India, Japan, Malaysia, South Korea and Vietnam to support its regional expansion. Mapletree's property portfolio includes award-winning projects in Singapore such as the VivoCity, Mapletree Business City, and Tata Communications Exchange as well as mixed-use developments in the region such as Future City and Nanhai Business City in China.
For more information, please visit www.mapletree.com.sg
This release is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for units in MGCCT ("Units"). The value of Units and the income derived from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, the Manager or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of the principal amount invested. Investors have no right to request the Manager to redeem their Units while the Units are listed. It is intended that Unitholders of MGCCT may only deal in their Units through trading on the Singapore Exchange Securities Trading Limited ("SGX-ST"). Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units. The past performance of MGCCT is not necessarily indicative of its future performance.
This release may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward - looking statements as a result of a number of risks, uncertainties and assumptions. Representatives examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from similar developments, shifts in expected levels of property rental income, changes in operating expenses, including employee wages, benefits and training, property expenses and governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. You are cautioned not to place undue reliance on these forward looking statements, which are based on current view of management on future events.
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