1H FY21/22 Financial Results - Financial Statements

(Constituted in the Republic of Singapore pursuant to a Trust Deed dated 14 February 2013 (as amended))

MAPLETREE NORTH ASIA COMMERCIAL TRUST UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR FROM 1 APRIL 2021 TO 30 SEPTEMBER 2021 AND DISTRIBUTION ANNOUNCEMENT

TABLE OF CONTENTS

Item No.	Description	Page No.
-	Summary of Results of Mapletree North Asia Commercial Trust Group	2
-	Introduction	3
1.1	Consolidated Statement of Profit or Loss, Statement of Comprehensive	5
	Income and Distribution Statement
1.2	Statements of Financial Position	8
1.3	Consolidated Statement of Cash Flows	10
1.4	Statements of Movements in Unitholders' Funds	12
1.5	Details of Any change in Units	13
2	Notes to the Condensed Interim Consolidated Financial Statements	14
3	Total Number of Issued Units	22
4	Sales, Transfers, Cancellation and/or Use of Treasury Units and Subsidiary	22
	Holdings
5 & 6	Audit statement	22
7 & 8	Changes in Accounting Policies	22
9	Review of Performance	23
10	Variance from Previous Forecast / Prospect Statement	26
11	Outlook and Prospects	26
12 & 13	Distributions	28
14	General mandate relating to interested person transactions	28
15	Confirmation pursuant to Rule 720(1) of the Listing Manual	28
16	Additional information required pursuant to Rule 706A of the Listing	29
	Manual
17	Confirmation by the Board	29

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MAPLETREE NORTH ASIA COMMERCIAL TRUST UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR FROM 1 APRIL 2021 TO 30 SEPTEMBER 2021 AND DISTRIBUTION ANNOUNCEMENT

Summary Results of Mapletree North Asia Commercial Trust ("MNACT") Group

	1H FY21/22 1	1H FY20/21 2	Variance%
Gross revenue(S$'000)	215,441	190,099	13.3
Net property income (S$'000)	161,879	139,740	15.8
Distributable income (S$'000)	119,533	96,832	23.4
Distribution per unit (cents) 3	3.426	2.876	19.1

Footnotes:

1. Period from 1 April 2021 to 30 September 2021 ("1H FY21/22")
2. Period from 1 April 2020 to 30 September 2020 ("1H FY20/21")
3. MNACT has amended its distribution policy to make distributions on a half-yearly basis starting from 1H FY20/21. Consequently, DPU for 1H FY21/22 is calculated based on the income available for distribution for 1H FY21/22 over the number of units in issue as at the end of the period of 3,488,854,672 units. The number of units in issue as at the end of 1H FY21/22 does not include the payment of Manager's base fee and the property manager's management fees (collectively known as "Fees") in units of 15,259,182 for 1H FY21/22. The units for payment of Fees for 1H FY21/22, to be issued in November 2021, will be included in the computation of the DPU payable for the second half of the financial year.

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MAPLETREE NORTH ASIA COMMERCIAL TRUST UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR FROM 1 APRIL 2021 TO 30 SEPTEMBER 2021 AND DISTRIBUTION ANNOUNCEMENT

Introduction

Mapletree North Asia Commercial Trust1 ("MNACT") was constituted in the Republic of Singapore pursuant to a Trust Deed dated 14 February 2013 (as amended). MNACT was listed on Singapore Exchange Securities Trading Limited ("SGX-ST") on 7 March 2013 (the "Listing Date") as a real estate investment trust. The principal investment strategy of MNACT is to invest, directly or indirectly in the Greater China region, Japan and South Korea, in a diversified portfolio of income-producing real estate which is used primarily for commercial purposes (including real estate used predominantly for retail and/or offices), as well as real estate-related assets.

The current portfolio of MNACT comprises thirteen commercial properties in China, in Hong Kong SAR, Japan and South Korea, with a total lettable area of 5.9 million square feet. Their total book value2 is S$8,443.6 million as of 30 September 2021:

1. Festival Walk, a landmark territorial retail mall and lifestyle destination with an office component in the Kowloon Tong area of Hong Kong. Festival Walk has been consistently ranked as one of the top ten shopping malls in Hong Kong (acquired on listing date);
2. Gateway Plaza, a premier Grade-A office building with a retail podium located in the established and prime Lufthansa Area in Beijing, China (acquired on listing date);
3. Sandhill Plaza, a premium quality business park development located at Zhangjiang Hi-tech Park, within the Pudong New Area, Shanghai, China (acquired on 17 June 2015);
4. Properties in Japan, with good-quality specifications (collectively, the "Japan Properties"):
5. • Six office buildings, comprising three office buildings in Tokyo (IXINAL Monzen-nakacho Building, Higashi-nihonbashi1-chome Building, and TS Ikebukuro Building); an office building in Yokohama (ABAS Shin-Yokohama Building); and two office buildings in Chiba (SII Makuhari Building and Fujitsu Makuhari Building) (acquired on 25 May 2018);
   • two office buildings, mBAY POINT Makuhari ("MBP") located in Chiba and Omori Prime Building ("Omori") located in Tokyo (acquired on 28 February 20203); and
   • one office building, Hewlett-Packard Japan Headquarters Building ("HPB") located in Tokyo (acquired on 18 June 20216)
6. 50% interest in The Pinnacle Gangnam, a high quality office building located at Gangnam-gu in Seoul, South Korea (acquired on 30 October 2020).4,5

All these properties enjoy excellent connectivity via convenient access to major roads, expressways and subway lines, with quality tenants operating across diversified trade sectors.

Mapletree North Asia Commercial Trust Management Ltd. ("MNACTM" or the "Manager") aims to deliver stable and steady DPU growth to Unitholders, through actively managing and enhancing the properties, acquiring good quality income-producing commercial assets aligned with MNACT's investment mandate, and having in place an active capital management strategy to manage both interest rate and foreign exchange volatility. The Manager monitors MNACT's cash flow position and working capital requirements to ensure adequate reserves and liquidity to meet its financial obligations. The Manager also actively refinances MNACT's financial obligations so as to manage the debt maturity profile.

1. Formerly known as Mapletree Greater China Commercial Trust.
2. Includes MNACT's 50.0% effective interest in The Pinnacle Gangnam.
3. Please refer to MNACT's SGX-ST Announcement dated 28 February 2020 titled "Issuance of Transaction Units to Sponsor's Nominee, and Completion of Acquisition of Two Office Properties in Greater Tokyo and Use of Proceeds".
4. Please refer to MNACT's SGX-ST Announcement dated 25 September 2020 titled "Acquisition of 50.0% Interest In an Office Building Known As "The Pinnacle Gangnam" Located In Seoul, Korea; (B) Manager To Waive Entitlement To Performance Fees".
5. Please refer to MNACT's SGX-ST Announcement dated 25 September 2020 titled "Expansion of Investment Mandate".
6. Please refer to MNACT's SGX-ST Announcement dated 18 June 2021 titled "Completion of acquisition of an office property in greater Tokyo and use of proceeds".

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MAPLETREE NORTH ASIA COMMERCIAL TRUST UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR FROM 1 APRIL 2021 TO 30 SEPTEMBER 2021 AND DISTRIBUTION ANNOUNCEMENT

Introduction (continued)

MNACT's distribution policy is to distribute at least 90.0% of its distributable income on a quarterly basis. Following the amendments to Rule 705 of the Listing Manual of the Singapore Exchange Securities Trading Limited on the quarterly reporting framework which took effect from 7 February 2020, MNACT has announced financial statements on a half-yearly basis with effect from the financial year from 1 April 2020 to 31 March 2021 ("FY20/21"). Consequently, MNACT has also amended its distribution policy to make distributions on a half-yearly basis.

Notwithstanding the above, the Manager will continue its proactive engagement with unitholders through various communication channels, including providing relevant and material updates between the announcements of half-yearly financial statements, through SGX announcements.

Distribution Reinvestment Plan ("DRP")

As part of the Manager's proactive capital management efforts to maintain an optimal overall aggregate leverage for MNACT, the Manager will continue to apply the Distribution Reinvestment Plan ("DRP") for MNACT's distribution for the period from 1 April 2021 to 30 September 2021.

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MAPLETREE NORTH ASIA COMMERCIAL TRUST UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR FROM 1 APRIL 2021 TO 30 SEPTEMBER 2021 AND DISTRIBUTION ANNOUNCEMENT

1.1 Consolidated Statement of Profit or Loss, Statement of Comprehensive Income and Distribution Statement (MNACT Group)

Statement of Profit and Loss	1H FY21/22	1H FY20/21	Variance
		Positive/
		(S$'000)	(S$'000)	(Negative)
				(%)
Gross revenue1
215,441	190,099	13.3
Property operating expenses	(53,562)	(50,359)	(6.4)
Net property income	161,879	139,740	15.8
Other income
Interest income	857	1,200	(28.6)
Other non-operating income- interim insurance proceeds2	-	36,751	(100.0)
Other gains/(loss)
Net foreign exchange gain	800	139	NM
Expenses
Manager's management fees3
- Base fee	(12,247)	(9,965)	(22.9)
- Performance fee	-	-	-
Trustee's fee	(413)	(418)	1.2
Other trust expenses	(1,416)	(1,288)	(9.9)
Finance costs4	(33,240)	(37,919)	12.3
Share of profit of joint venture5	2,414	-	NM
Profit before net change in fair value of investment	118,634	128,240	(7.5)
properties and financial derivatives
Net change in fair value of investment properties6	-	(304,890)	100.0
Net change in fair value of financial derivatives	(326)	3,947	NM
Profit/(loss) before income tax
118,308	(172,703)	NM
Income tax expenses	(19,707)	(17,808)	(10.7)
Profit/(loss) for the period	98,601	(190,511)	NM
Profit/(loss) attributable to:
Unitholders	96,141	(191,392)	NM
Perpetual securities holders7	2,010	-	NM
Non-controlling interests8	450	881	(48.9)
		98,601	(190,511)	NM
Earnings per unit (cents)
-	Basic and Diluted	2.773	(5.694)	NM

Footnotes:

1. Revenue for Gateway Plaza and Sandhill Plaza in China is presented net of Value Added Tax. Revenue for the Japan Properties is presented net of consumption tax.
2. Relates to the interim payments by the insurers, as partial payment on account of the estimated insurance claims for property damage and revenue loss due to business interruption at Festival Walk.
3. Manager's base fee is calculated based on 10% of distributable income for the period. This includes the asset management fee payable to Mapletree Investments Japan Kabushiki Kaisha ("MIJ") in cash which is calculated based on 10% of distributable income from the Japan Properties.
4. Includes the interest expenses imputed to the lease liabilities under Singapore Financial Reporting Standards (International)
   ("SFRS(I)") 16 Leases.
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.
6. Please refer to Note 2.4(c) on the valuation processes of MNACT Group with respect to investment properties.
7. MNACT has issued S$250,000,000 3.50% Perpetual Securities on 8 June 2021 to partially fund the acquisition of Hewlett Packard
   Japan Headquarters Building ("HPB"). Please refer to MNACT's SGX-ST Announcement dated 1 June 2021 titled "Issue of S$250,000,000 3.50% Perpetual Securities Pursuant to the US$1,500,000,000 Euro Medium Term Securities Programme".
8. Non-controllinginterests refers to the 1.53% effective interest in the Japan Properties held by MIJ.

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