China Merchants Commercial Real Estate Investment Trust reported unaudited operating statistics for the three months ended 30 September 2023. For the period, office properties in Shenzhen and Beijing generally performed better than the market and occupancy and passing rents were relatively resilient in the face of continued macroeconomic deterioration. Occupancy rates of New Times Plaza and Cyberport Building even increased slightly by 0.7 percentage points and 1.5 percentage points respectively.

The passing rent at Cyberport Building, Technology Building and Onward Science & Trade Center rose slightly, by 3.2%, 0.8% and 0.5% respectively. The one glaring exception was Technology Building 2 where the occupancy rate dropped by 12.1 percentage points to 79.1% due to the relocation of a large tenant. The leasing team is currently negotiating with several potential parties to take over this space and we expect the occupancy rate to recover.