28 MAPLETREE NORTH ASIA COMMERCIAL TRUST ANNUAL REPORT 2019/2020 PROPERTY PORTFOLIO 1 SUMMARY AND REVIEW HONG KONG SAR CHINA JAPAN HIGASHI- IXINAL MONZEN- NIHONBASHI NAKACHO 1-CHOME FESTIVAL WALK GATEWAY PLAZA SANDHILL PLAZA BUILDING (“MON”) BUILDING (“HNB”) Property City Hong Kong SAR Beijing Shanghai Tokyo Tokyo Address No. 80 No. 18 Xiaguangli, Block 1 to 5 and 7 to 9, 5-4, Fukuzumi 4-6, Higashi-nihonbashi Tat Chee Avenue, East 3rd Ring Road North, No. 2290 Zuchongzhi 2-chome, Koto-ku 1-chome, Chuo-ku Kowloon Tong Chaoyang District Road, Zhangjiang Science City, Pudong New District Asset Type Mall and Off ice Office Business Park Office Office Gross Floor Area Overall: 112,297 sq m Overall: 106,456 sq m 83,801 sq m 8,303 sq m 3,240 sq m (“GFA”)2 Off ice: 21,244 sq m (19%) Off ice: 94,715 sq m (89%) Retail: 91,053 sq m (81%) Podium: 11,741 sq m (11%) Net Lettable Area Overall: 74,171 sq m Overall: 106,456 sq m Overall: 63,284 sq m 6,852 sq m 2,601 sq m (“NLA”)2 Off ice: 19,879 sq m (27%) Off ice: 94,715 sq m (89%) Off ice: 61,684 sq m (97%) Retail: 54,292 sq m (73%) Podium: 11,741 sq m (11%) Amenities: 1,600 sq m (3%) No. of Storeys 7 fl oors (retail), Two 25-storey One 20-storey tower, 5-storey 8-storey 4 fl oors (off ice), office towers, 7 blocks of office building office building 3 basement car park levels 3-storey podium area, 3-storey buildings, 3 underground floors 2 basement car park levels Carpark Lots 830 692 460 28 8 Land Use Right Expiry 30 June 2047 25 February 2053 3 February 2060 Freehold Remaining Term 27 years 33 years 40 years Freehold of Land Lease No. of Tenants 185 91 53 85 No. of Leases 266 97 73 101 Tenant Type Multi-tenanted Multi-tenanted Multi-tenanted Multi-tenanted Multi-tenanted Year of Purchase by MNACT 2013 2013 2015 2018 2018 Purchase Price (Million) HK$20,700 (S$3,296)3 RMB5,150 (S$1,013)3 RMB1,862 (S$407)4 JPY8,639 (S$105)5 JPY1,995 (S$24)5 Valuation7 (Million) HK$28,530 (S$5,090) RMB6,853 (S$1,368) RMB2,424 (S$484) JPY8,170 (S$110) JPY2,360 (S$32) As % of Portfolio Valuation9 61.0 16.4 5.8 1.3 0.4 Cap Rate7 (%) 4.15 (Gross) 5.50 (Gross) 5.00 (Gross) 4.10 – 4.70 (Net) Occupancy Rate10 (%) 99.8 91.5 98.0 80.8 100 Major Tenants by Monthly – TaSTe – BMW – Spreadtrum – DSV – Tender Loving Care Gross Rental Income – Arup – CFLD11 – Hanwuji – DTS Services (a nursery) (“GRI”) for March 2020 – Festival Grand – Bank of China – Borouge – Kadokawa – Shigematsu – Advance WALE12 by Monthly 2.3 2.6 2.5 3.8 GRI (Years) Off ice: 3.9 Off ice: 2.3 Off ice: 3.6 Retail: 2.2 Podium: 4.1 Amenities: 2.5 Average Rental Retail: 8 -4 10 -9 Reversion in FY19/20 (%) Off ice: 6 Gross Revenue for 195,091 81,174 25,243 4,356 1,652 FY19/20 (S$’000) Gross Revenue for 253,996 87,221 25,020 5,438 1,365 FY18/19 (S$’000) 1 All information and numbers presented in this section are as of 31 March 2020 unless otherwise specified. 2 Square metre (“sq m”) is the standard convention for area in China. While square feet (“sq ft”) is the standard convention for area in Hong Kong SAR and tsubo is the standard convention for area in Japan, we have standardised to sq m for ease of comparison. 1 sq m = 10.7639 sq ft, 1 sq m = 0.3025 tsbuo. 3 Purchase price as of 7 March 2013 (listing date). Based on exchange rate: S$1 = HK$6.2803 and S$1 = RMB5.084. 4 As of acquisition date of 17 June 2015. Based on exchange rate S$1= RMB4.5749. 5 As of acquisition date of 25 May 2018. Based on exchange rate S$1 = JPY82.18. 6 As of acquisition date of 28 February 2020. Based on exchange rate S$1 = JPY78.9702. GOVERNANCE FINANCIALS OVERVIEW PERFORMANCE & SUSTAINABILITY & OTHERS 29 ACQUIRED IN FY19/20 ABAS FUJITSU TS IKEBUKURO SHIN-YOKOHAMA SII MAKUHARI MAKUHARI OMORI PRIME MBAY POINT BUILDING (“TSI”) BUILDING (“ASY”) BUILDING (“SMB”) BUILDING(“FJM”) BUILDING (“OMORI”) MAKUHARI (“MBP”) Tokyo Yokohama Chiba Chiba Tokyo Chiba 63-4, Higashi-Ikebukuro 6-1, Shin-yokohama 8, Nakase 1-chome, 9-3, Nakase 1-chome, 21-12, Minami-oi 6, Nakase 1-chome, 2-chome, Toshima-ku 2-chome, Kohoku-ku, Mihama-ku, Chiba City Mihama-ku, Chiba City 6-chome, Mihama-ku, Chiba City Yokohama City, Shinagawa-ku Kanagawa Office Office Office Office Office Office 4,898 sq m 4,638 sq m 70,744 sq m 61,088 sq m 10,442 sq m 170,499 sq m 4,002 sq m 3,170 sq m 70,744 sq m 61,088 sq m 6,798 sq m 84,785 sq m 9-storey 9-storey 26-storey 21-storey 13-storey 26-storey office building office building, office building, off ice building off ice building, office building, 2 basement levels 1 basement level 1 basement level 1 basement level 15 24 298 251 37 680 Single-tenanted Multi-tenanted Single-tenanted Single-tenanted Multi-tenanted Multi-tenanted 2018 2018 2018 2018 2020 2020 JPY5,220 (S$64)5 JPY2,695 (S$33)5 JPY26,344 (S$321)5 JPY18,411 (S$224)5 JPY6,610(S$84)6 JPY31,500 (S$398)6 JPY5,300 (S$72) JPY2,820 (S$38) JPY27,400 (S$370) JPY19,200 (S$259) JPY7,100(S$96)8 JPY31,700 (S$428)8 0.9 0.5 4.4 3.1 1.1 5.1 4.20 (Net)8 4.50 (Net)8 100 100 100 100 100 86.6 – PERSOL – Rentas – Seiko Instruments Inc. – Fujitsu – Eighting Co., Ltd – NTT Urban Development – Lawson – Isuzu Linex Corporation (“NTT UD”) – JAPAN CREATE – Brillnics – AEON Credit Service – Ministop 3,590 2,225 22,768 14,506 449 3,424 2,966 1,803 18,861 12,017 n.a n.a 7 Based on exchange rates S$1= HK$ 5.6051, S$1 = RMB 5.0095 and S$1 = JPY 74.0401. Please refer to page 22 in the Financial Review and Capital Management section on the appointed valuers and valuation methodologies used. 8 Based on the independent valuations of MBP and Omori as of 1 November 2019 undertaken by Cushman & Wakefield K.K. 9 Portfolio valuation as of 31 March 2020 was S$8,347 million. 10 Occupancy rates are based on committ ed leases (which include existing leases). 11 China Fortune Land Development (“CFLD”). 12 WALE is based on the expiry dates of the committ ed leases (which include existing leases). 30 MAPLETREE NORTH ASIA COMMERCIAL TRUST ANNUAL REPORT 2019/2020 PROPERTY PORTFOLIO SUMMARY AND REVIEW Notwithstanding the challenging operating Manufacturing sector, which accounted for MNACT TRADE MIX environment for MNACT’s properties in 14.7% of the monthly portfolio GRI in March BY MONTHLY GRI (%) FY19/20, the Manager remains committ ed 2020, became the top trade sector. The (For the Month of March 2020) in its active asset management strategy third largest sector by contribution in March with a focus on maintaining high portfolio 2020 was the Financial Institution/Insurance/ occupancy. We also continued our portfolio Banking/Real Estate sector, at 12.3%. diversification eff orts, with the acquisitions of two off ice properties (MBP and Omori) in Strong and Diverse Tenant Base Greater Tokyo, Japan. The acquisitions of MBP and Omori further improved tenant diversity within the portfolio. Greater Diversification of MNACT’s Portfolio As of 31 March 2020, a total of 57 tenants As of 31 March 2020, there was greater from the medical and healthcare, finance and diversification for the portfolio in terms of insurance, information and communications, asset type and trade mix. The weighting of and services sectors were added to MNACT’s Machinery / retail and others 1 sectors by portfolio NPI tenant base. Equipment / 14.7 Manufacturing reduced from 56.9% in FY18/19 to 47.7% in FY19/20, while the weighting from the off ice The anchor tenant at MBP, NTT UD, was Apparel & Fashion sector increased from 43.1% in FY18/19 to also included in the portfolio’s top 10 list. 14.5 Accessories 52.3% in FY19/20. Together, MNACT’s top 10 tenants accounted Financial Institution / for 36.1% of the portfolio GRI for the month Insurance / Banking / By trade sector, the contribution from the of March 2020, while another 404 local 12.3 Real Estate Apparel & Fashion Accessories sector to the and international tenants contributed to portfolio’s monthly GRI also declined from the remaining 63.9%. No single tenant 9.3 Food & Beverages 16.7% in March 2019 to 14.5% in March 2020. contributed more than 7.4% of the portfolio’s Conversely, the Machinery/Equipment/ total monthly GRI. 7.5 Automobile Professional & MNACT’S TOP 10 TENANTS BY MONTHLY GRI 6.4 Business Services (For the Month of March 2020) Departmental Store % of 6.4 & Supermarket Building Tenant Sector Trade Sector Monthly GRI 1 Gateway Plaza BMW Off ice Automobile 7.4 Leisure & 6.1 Entertainment 2 SMB Seiko Off ice Machinery/Equipment/ 5.7 Instruments Inc. Manufacturing 3 MBP NTT UD Off ice Financial Institution/Insurance/ 5.5 Services 5.2 Banking/Real Estate Personal 4 Festival Walk TaSTe Retail Departmental Store 3.6 4.7 Cosmetics & Supermarket 5 FJM Fujitsu Off ice Machinery/Equipment/ Information 3.6 Manufacturing 4.1 Technology Houseware, 6 Festival Walk Arup Off ice Professional & Business Services 3.6 Electronics 7 Festival Walk Festival Grand Retail Leisure & Entertainment 1.9 3.8 & Furnishings 8 Festival Walk Apple Retail Houseware, Electronics Luxury Jewellery, 1.8 Watches & & Furnishings 2.6 Accessories 9 Gateway Plaza CFLD Off ice Financial Institution/Insurance/ 1.7 Banking / Real Estate Pharmaceutical / 1.4 Medical 10 Festival Walk I.T Retail Apparel & Fashion Accessories 1.6 Natural 0.2 Resources Renewable 0.1 Energy 0.4 Others 1 Others comprised car park revenue and ice rink income.