Mapletree North Asia Commercial Trust : FY21/22 Financial Results - Press Release

For Immediate Release:

• A) FY21/22 DPU increased by 10.4% compared to FY20/21

  •  Lower rental reliefs to retail tenants at Festival Walk

  •  Contributions from acquisitions in Japan and South Korea

  •  Festival Walk's insurance proceeds1 to be distributed

• B) High portfolio occupancy maintained at 97.4% as at 31 March 2022

• C) Independent valuations of MNACT's portfolio of S$8,267.1 million as at 31 March 2022 held steady compared to that as at 31 October 2021

• D) Three forms of Scheme Consideration for MNACT Unitholders, including an option to receive S$1.1949 in cash per MNACT Unit for proposed merger

  •  Provides greater flexibility for MNACT Unitholders to elect the form of Scheme Consideration that is most suited to their investment needs

19 April 2022 - Mapletree North Asia Commercial Trust Management Ltd. (the "MNACT Manager"), the manager of Mapletree North Asia Commercial Trust ("MNACT"), announced today MNACT's financial results for the full year from 1 April 2021 to 31 March 2022 ("FY21/22").

All capitalised terms used in this press release which are not otherwise defined herein shall bear the meanings ascribed to them in the joint announcements dated 31 December 2021 and 21 March 2022 titled "Proposed Merger Of Mapletree Commercial Trust and Mapletree North Asia Commercial Trust By Way Of A Trust Scheme Of Arrangement" and "Revision of the Trust Scheme", respectively, issued by the MNACT Manager and Mapletree Commercial Trust Management Ltd., as manager of Mapletree Commercial Trust ("MCT", and as manager of MCT, the "MCT Manager").

1 To mitigate the cash flow impact on distributable income when Festival Walk's mall and office tower were closed with no rental collection, and until such time the loss of revenue is recovered through the insurance claims, the MNACT Manager implemented distribution top-ups, which were paid to MNACT Unitholders in 3Q FY19/20 and 4Q FY19/20. The insurance proceeds in excess over the distribution top-ups paid to MNACT Unitholders will be distributed to MNACT Unitholders as part of the semi-annual distribution for the period from 1 October 2021 to 31 March 2022.

1

Mapletree North Asia Commercial Trust Management Ltd.

10 Pasir Panjang Road, #13-01 Mapletree Business City, Singapore 117438

Tel [phone] Fax [phone]www.mapletreenorthasiacommercialtrust.comCo. Reg No. 201229323R

Financial Highlights

FY21/22	FY20/211	Variance %	2H FY21/222	2H FY20/213	Variance %
Gross Revenue4 (S$'000)	426,676	391,415	9.0	211,235	201,316	4.9
Net Property Income4 (S$'000)	321,941	292,040	10.2	160,062	152,300	5.1
Distributable Income (S$'000)	239,219	210,150	13.8	119,686	113,318	5.6
DPU (cents)	6.819	6.175	10.4	3.393	3.299	2.8

The increase in gross revenue and NPI in FY21/22 and 2H FY21/22, compared to FY20/21 and 2H

FY20/21, was mainly due to (a) lower rental reliefs granted to the retail tenants at Festival Walk (FY21/22: S$14.7 million, 2H FY21/22: S$10.0 million) compared to the same period last year (FY20/21: S$49.8 million, 2H FY20/21: S$14.9 million); (b) contribution from HPB acquired on 18 June 2021; and (c) a stronger average rate of RMB against SGD. The increase was partially offset by lower average rental rates at Festival Walk mall and Gateway Plaza as well as lower average rates of HKD and JPY against SGD.

DPU for FY21/22 was 6.819 cents, 10.4% higher than FY20/21, taking into account the increase in gross revenue and NPI, distribution of Festival Walk's insurance proceeds in excess of the distribution top-ups in FY19/20 and contribution from The Pinnacle Gangnam5 acquired on 30 October 2020. For 2H FY21/22, DPU increased by 2.8% compared to that in 2H FY20/21.

Ms. Cindy Chow, Chief Executive Officer of the MNACT Manager, said, "We are pleased to report a year-on-year DPU growth of 10.4% for FY21/22. We have continued to maintain high occupancy levels across our properties through proactive leasing, and delivered on our strategy to diversify MNACT's income streams through the acquisitions of HPB in Tokyo and The Pinnacle Gangnam in Seoul."

"FY21/22 started on a positive note with the relaxation of social distancing measures and rising vaccination rate in Hong Kong SAR, leading to improved retail sentiments by the end of 2021. We have seen a narrowing of Festival Walk's average retail rental reversion, at negative 18% for 4Q

FY21/22 compared to negative 32% for the first nine months of FY21/22. However, the outbreak of the Omicron variant of COVID-19 from January 2022 resulted in the authorities imposing unprecedented restrictions on social activities to slow the spread of the virus. To help tenants at

• 1 For the period from 1 April 2020 to 31 March 2021 ("FY20/21").

• 2 For the period from 1 October 2021 to 31 March 2022 ("2H FY21/22").

• 3 For the period from 1 October 2020 to 31 March 2021 ("2H FY20/21").

• 4 Gross Revenue and NPI do not include the contribution from The Pinnacle Gangnam, acquired on 30 October 2020. MNACT will share profit after tax of The Pinnacle Gangnam based on its 50% interest.

• 5 Share of profit of joint venture refers to the 50% effective interest in The Pinnacle Gangnam. The acquisition of The Pinnacle Gangnam was completed on 30 October 2020.

Festival Walk mall tide through the challenging period, we initiated a new round of rental reliefs, bringing the total rental reliefs granted in FY21/22 to S$14.7 million. This was lower than the rental reliefs extended to the retail tenants in FY20/21 of S$49.8 million, largely underpinned by the improved economic sentiments in Hong Kong SAR and an increased vaccination rate against COVID-19 in 2021."

"With the easing of the restrictive measures to take effect from 21 April 2022 as announced by the authorities, we remain cautiously optimistic that as the impact of COVID-19 recedes, consumer sentiment would improve and our tenants could expect to see some return to normalcy in their businesses. Meanwhile, to put Festival Walk mall in good stead for growth as the Hong Kong SAR retail market recovers, we will continue to strategically make room for more popular F&B, lifestyle and services trades as well as to roll out various crowd-pulling marketing campaigns ranging from themed promotions to shopping and dining rewards to entice repeat spending and increase customer loyalty."

"On 21 March 2022, together with the MCT Manager, we had announced that the MCT Manager has agreed to our request to include an alternative option for the MNACT Unitholders to receive the Scheme Consideration of S$1.1949 per MNACT unit at NAV wholly in cash. This would provide additional optionality and enhanced flexibility to MNACT Unitholders who wish to fully realise their investment, giving higher certainty amidst prevailing market conditions. MNACT Unitholders can also choose to remain invested in a larger and more diversified platform that has a compelling growth strategy ahead through the Scrip-Only Consideration and the Cash-and-Scrip Consideration. We remain confident in the merits of the Merger and the exciting future ahead, where the Merged Entity will be well-placed to reposition the enlarged portfolio and to ride on the recovery and long-term growth of Asia."

Operational Update

Portfolio AssetUpdateby	Festival Walk	Gateway Plaza	Sandhill Plaza	Japan Properties	The Pinnacle Gangnam
Average rental reversiona for leases that were renewed or re-let in FY21/22	Retail: - 27%b (4Q: -18% 1Q to 3Q: -32%)	- 24%c	5%	1%	44%d
Committed occupancy level as at 31 March 2022	Portfolio level: 97.4%
99.6%	94.3%	98.6%	97.7%e	97.3%
Percentage of leases (by lettable area) with expiries in FY21/22 that were renewed or re-let as at 31 March 2022	Portfolio level: 96%
99%	84%	98%	95%	100%

a

Average rental reversion is calculated based on the change in the effective rental rates of the new leases compared to the previous leases. It takes into account rent-free periods and step-up rental rates over the lease term (if any). It excludes rental rates for short-term leases that are less than or equal to 12 months where the rental rates are not reflective of prevailing market rents that are on normal lease tenure basis.

b There were 64 retail leases with a total net lettable area ("NLA") of 11,100 sq m that contributed to the average rental reversion of negative 27%. For 4Q FY21/22, there were 15 retail leases with a total NLA of 2,546 sq m that contributed to the average rental reversion of negative 18%. For 1Q to 3Q FY21/22, there were 49 retail leases with a total NLA of 8,554 sq m that contributed to the average rental reversion of negative 32%. For the office component, there was only 1 office lease with a rental reversion of 8% for FY21/22.

• c There were 19 office leases with an average rental reversion of negative 24%.

• d There were 6 office leases and 1 retail lease that contributed to the average rental reversion of 44%.

• e All Japan Properties except mBAY POINT Makuhari ("MBP") registered full occupancy as at 31 March 2022. The occupancy rate for MBP was 92.2%.

Festival Walk

Festival Walk registered growth in gross revenue and NPI of 10.4% and 10.8%, respectively, for FY21/22 compared with FY20/21. This is mainly due to a lower quantum of rental reliefs granted to Festival Walk retail tenants, partially offset by a lower average retail rental rate.

Tenants' sales and shopper traffic at Festival Walk for FY21/22 increased by 8.7% and 11.5%, respectively, compared to last year, largely due to positive consumption sentiment amid improved economic conditions, low COVID-19 infection cases and the government's consumption voucher scheme to boost spending in 2021 (prior to the outbreak of the Omicron variant from January 2022).

With the roll out of various relief measures by the government including the disbursement of the new round of electronic consumption vouchers in April 2022, together with the easing of restrictive measures from 21 April 20221, these are expected to provide support to the retail sector2 and encourage spending at Festival Walk mall.

• 1 The easing of restrictions from 21 April 2022 include extension of dining hours to 10pm (from 6pm), increased capacity to 4 people for public gatherings (up from 2 currently) and the reopening of beauty parlours, cinemas and gyms.

• 2 Press Release "Provisional Statistics of Retail Sales for February 2022" by Hong Kong SAR government, published on 31 March 2022.

Office Properties in Beijing, Shanghai, Greater Tokyo and Seoul

For Gateway Plaza, gross revenue and NPI for FY21/22 were higher by 4.3% and 4.6%, respectively, as compared to FY20/21 mainly due to the absence of rental reliefs (FY20/21: S$0.5 million) and a higher average rate of RMB against SGD, partially offset by a lower average rental rate.

Gross revenue and NPI for Sandhill Plaza grew 6.5% and 6.1%, respectively, for FY21/22 compared to a year ago, underpinned by higher average occupancy rate and a higher average rate of RMB against SGD.

For FY21/22, the Japan Properties registered a 10.8% increase in gross revenue and a 15.9% increase in NPI compared to FY20/21 mainly due to the contribution from the newly acquired HPB in June 2021.

The acquisition of The Pinnacle Gangnam on 30 October 2020 continued to augment MNACT's earnings, increasing profit after tax by S$23.0 million for FY21/22. On a pro-forma basis, The Pinnacle Gangnam would have contributed 2.7% to both the portfolio's gross revenue and NPI for FY21/22.

Update on Portfolio Valuation1

MNACT's portfolio valuation2 of 13 properties amounted to S$8,267.1 million as at 31 March 2022.

When compared with the valuation of S$8,319.5 million as at 31 October 2021, the valuation of MNACT's portfolio as at 31 March 2022 was marginally lower by 0.6%, primarily attributed to the impact of exchange rate fluctuations. While the valuations (in local currency) for Festival Walk and the Japan Properties remained unchanged, there were slight declines in fair valuation for Gateway Plaza (due to lower transacted rental assumptions adopted by the valuer) and Sandhill Plaza (due to the newly levied property tax3 at Sandhill Plaza), partially offset by a fair valuation gain for The Pinnacle Gangnam.

While the exchange rates of JPY and KRW against SGD were weaker compared to 31 October 2021, there was a net translation gain due to the stronger HKD and RMB against SGD.

MNACT's portfolio of 12 properties (excluding HPB, which was acquired in June 2021) was valued at S$7,796.6 million as at 31 March 2022, about 1.9% lower compared to 31 March 2021. This was largely due to (a) lower transacted rents and lower market rents assumed by the valuer for Festival Walk; (b) lower transacted rents assumed by the valuer for Gateway Plaza; (c) the newly levied property tax at

• 1 For more information, please refer to MNACT's SGX announcement dated 19 April 2022 titled "Valuation of Properties in Mapletree North Asia Commercial Trust".

• 2 The independent valuations on Festival Walk, Gateway Plaza and Sandhill Plaza were carried out by Knight Frank Petty Ltd as at 31 March 2022, the independent valuations on the Japan Properties were carried out by JLL Morii Valuation & Advisory K.K. as at 31 March 2022 and the independent valuation of The Pinnacle Gangnam was carried out by CBRE Korea Company Limited as at 31 March 2022.

• 3 Sandhill Plaza is located in Zhangjiang Science City and was not subjected to property tax prior to 31 December 2021. The property tax that was implemented by the local authorities on 1 April 2022 (applied retrospectively from 1 January 2022) is computed based on 1.2% of the historical tax value of the property.