Mapletree North Asia Commercial : 1Q FY22/23 Business Update - Press Release

For Immediate Release:

1. 1Q FY22/23 NPI higher by 4.1% compared to 1Q FY21/22, with full-quarter contribution from the acquisition of HPB in Japan in June 2021 and a lower quantum of rental relief granted at Festival Walk
2. Portfolio occupancy remained high at 97.2% as at 30 June 2022

21 July 2022 - Mapletree North Asia Commercial Trust Management Ltd. (the "MNACT Manager"), the manager of Mapletree North Asia Commercial Trust ("MNACT"), announced today a net property income ("NPI") of S$81.5 million for the first quarter from 1 April 2022 to 30 June 2022 ("1Q FY22/23"), an increase of 4.1% compared to the same quarter last year.

The growth in NPI in 1Q FY22/23 compared to 1Q FY21/22 was largely driven by the full-quarter contribution from Hewlett-Packard Japan Headquarters Building ("HPB") acquired on 18 June 2021 and a lower quantum of rental relief granted at Festival Walk. The increase was partially offset by lower average rental rates at Festival Walk mall and Gateway Plaza, as well as the newly levied property tax1 at Sandhill Plaza.

Financial Highlights	1Q FY22/23	1Q FY21/22	Variance
			%
Gross Revenue2 (S$'000)	104,682	103,028	1.6
Net Property Income2 (S$'000)	81,499	78,283	4.1

1. 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.
2. 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.

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.com Co. Reg No. 201229323R

Ms. Cindy Chow, Chief Executive Officer of the MNACT Manager, said, "We are pleased to report a higher NPI for 1Q FY22/23 by 4.1% compared to the corresponding period last year."

"In Hong Kong SAR, the restrictive measures that were implemented due to the 5th wave of COVID- 19 were relaxed progressively in late April 2022 and May 2022, and the first batch of consumption vouchers was disbursed by the authorities in April 2022 to stimulate the economy. Consequently, there was a lower quantum of rental relief granted in 1Q FY22/23 of S$0.2 million (compared to 1Q FY21/22 of S$4.0 million). The second batch of consumption vouchers to be disbursed in August 2022 is expected to continue to help boost retail sales. The sustained recovery of retail sales will however depend on an improvement in the COVID-19 situation, the opening of the borders to international travellers and the pace of economic recovery."

"During the quarter, in Beijing, there were localised lockdowns of some residential and office buildings with incidents of COVID-19 infections, resulting in a reduction of employees returning to work in the offices. There was also a citywide shutdown in Shanghai lasting from end March 2022 till 30 May 2022 due to the resurgence of COVID-19 cases. Total rental relief of about S$0.2 million was granted to support the affected F&B/retail tenants in Gateway Plaza (Beijing) and Sandhill Plaza (Shanghai). For Gateway Plaza, two leases expired in 1Q FY22/23, and both were re-let at a positive average rental reversion of 11% (compared to the negative average rental reversion in the previous quarter). The rent of one of the two expired leases was at a low base as it was leased during the height of COVID- 19 in 2020. Both new tenants are from the technology and financial services sectors."

"On 23 May 2022, we received strong endorsement from our unitholders to proceed with the merger of Mapletree Commercial Trust ("MCT") and MNACT to form Mapletree Pan Asia Commercial Trust ("MPACT"). As we embark on this significant milestone, on behalf of the board of directors and management team, we would like to thank our unitholders once again for their long-standing support and trust in MNACT since IPO. We look forward to the next stage of growth as part of MPACT to deliver long-term sustainable value to all unitholders."

2

Operational Update

Portfolio

Update by

Festival

Gateway

Sandhill

Japan

The Pinnacle

Asset

Walk

Plaza

Plaza

Properties

Gangnam

Average

rental

reversiona

for leases

Retail: - 7%b

11%c

3%d

- 1%e

20%f

that were renewed or re-

let in 1Q FY22/23

Committed	occupancy			Portfolio level: 97.2%
level as at 30 June 2022	99.4%	92.8%		98.9%		97.8%g	97.9%
Percentage	of leases			Portfolio level: 28%
(by lettable	area) with
expiries in FY22/23 that	49%	9%		6%		44%	72%
were renewed or re-let
as at 30 June 2022

1. 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.
2. There were 16 retail leases with a total net lettable area ("NLA") of 1,309 sq m that contributed to the average rental reversion of negative 7%. Some of the expired leases were renewed/re-let at higher rental rates compared against a lower base previously committed during the past two pandemic years. For the office component, there was only 1 office lease with a rental reversion of negative 24% for 1Q FY22/23.
3. There were 2 office leases with an average rental reversion of 11%.
4. There were 4 office leases and 1 retail lease that contributed to the average rental reversion of 3%.
5. There were 11 office leases that contributed to the average rental reversion of negative 1%.
6. There was 1 office lease that contributed to the rental reversion of 20%.
7. All Japan Properties except mBAY POINT Makuhari ("MBP") registered full occupancy as at 30 June 2022. The occupancy rate for MBP was 92.5%.

For Festival Walk, shopper traffic in 1Q FY22/23 was lower by 10.0%, while tenants' sales were down by 1.1%, compared to the same quarter a year ago. This was due to the tighter social distancing measures and dine-in bans imposed by the authorities to contain the spread of COVID-19 at the start of 2022, that were relaxed progressively in late April 2022 and May 2022. Gross revenue for 1Q FY22/23 registered a slight dip of 0.8%, while NPI was marginally higher by 0.04%, compared with 1Q FY21/22.

For Gateway Plaza, 1Q FY22/23 gross revenue and NPI were higher by 6.2% and 11.1%, respectively, as compared to 1Q FY21/22 mainly due to stronger RMB against SGD and higher average occupancy rate, partially offset by a lower average rental rate.

Sandhill Plaza's gross revenue and NPI for 1Q FY22/23 were lower by 3.7% and 7.8%, respectively, compared to a year ago, mainly due to the newly levied property tax and lower average effective rents, offset by the stronger RMB against SGD. The Japan Properties and The Pinnacle Gangnam continued to deliver steady growth with higher revenue and NPI for 1Q FY22/23 compared to the corresponding period last year.

3

Outlook

Global economic growth for 2022 is set to moderate compared to the previous year, with challenges posed by factors such as rising interest rates, global inflation, ongoing supply chain disruptions, geopolitical tensions and the evolving COVID-19 situation.

For Hong Kong SAR1 retail market, the disbursement of HK$66.4 billion of consumption vouchers is expected to give a boost to domestic demand, although a full retail market recovery will have to rely on inbound tourism growth and growth in the local economy. With the newly-appointed government administration indicating plans to prioritise re-opening Hong Kong SAR's borders, any positive development may augur well for the economy and the retail market.

In Beijing2, new office supply in 2022 is expected to remain low, keeping vacancy rates from rising further. For markets such as Lufthansa, while there is office demand especially coming from financial and technology sectors, with new supply completed in the first quarter of 2022, prospective tenants are expected to seek quality buildings with lower rental cost expectations. For Shanghai3, companies from the technology, media and telecommunications ("TMT"), AI, software services and pharmaceutical sectors will continue to contribute to demand for the business park offices.

In Tokyo4, after the past few quarters of rental corrections and mild vacancy increments, the office market is expected to become more stable as the market approaches an equilibrium point between rent pricing and tenant demand. For Seoul5, with limited supply and solid leasing demand in the Gangnam Business District, where The Pinnacle Gangnam is located, vacancy is expected to remain low.

1. CBRE, Hong Kong Retail, Q1 2022
2. Savills, Beijing Office, May 2022
3. CBRE, Shanghai Figures, Q1 2022
4. Savills, Japan Office, Q1 2022
5. CBRE, Seoul Figures, Q1 2022

4

Capital Management Update

Key metrics as at 30 June 2022, compared with the preceding quarter, are shown in the table below. To mitigate the impact of interest rate volatility, a high proportion of MNACT's debt at 79% is on a fixed rate basis as at 30 June 2022.

			As at 30 June 2022		As at 31 March 2022
	Aggregate Leverage Ratio (%)		42.1		41.5
	Average Term to Maturity for Debt (years)		2.42		2.68
	Annalised Effective Interest Rate for the Quarter		1.84		1.80
	(% per annum)
	Adjusted Interest Cover Ratio on a Trailing 12-month Basis	4.2		4.3
	(times)
	Percentage of Debt with Fixed Interest Cost (%)		79		78
	Total Credit Facilities (Including Committed	and	593.2		636.1
	Uncommitted) (S$ million)

For further information, please contact:

Mapletree North Asia Commercial Trust Management Ltd.

Elizabeth Loo Suet Quan

Director, Investor Relations

Tel: [phone]

Email:[e-mail]

Website:www.mapletreenorthasiacommercialtrust.com

About Mapletree North Asia Commercial Trust

Listed on the Singapore Exchange Securities Trading Limited ("SGX-ST") on 7 March 2013, Mapletree North Asia Commercial Trust ("MNACT") is the first real estate investment trust ("REIT") that offers investors the opportunity to invest in high-quality commercial properties situated in China, Hong Kong SAR, Japan and South Korea.

MNACT consists of 13 properties in China, Hong Kong SAR, Japan and South Korea:

• Beijing, China: Gateway Plaza, a Grade-A office building with a podium area;
• Hong Kong SAR: Festival Walk, a landmark territorial retail mall with an office component;
• Shanghai, China: Sandhill Plaza, a Grade-A business park development situated in Zhangjiang Science City, Pudong;
• Japan: total of nine properties comprising five office buildings in Tokyo (IXINAL Monzen-nakacho Building, Higashi-nihonbashi1-chome Building, TS Ikebukuro Building, Omori Prime Building and Hewlett-Packard Japan Headquarters Building); an office building in Yokohama (ABAS Shin-Yokohama Building) and three office buildings in Chiba (SII Makuhari Building, Fujitsu Makuhari Building and mBAY POINT Makuhari) (collectively the "Japan Properties"); and
• Seoul, South Korea: The Pinnacle Gangnam, a freehold office building with retail amenities located in Gangnam business district.

5