GATEWAY PLAZA FESTIVAL WALK SANDHILL PLAZA BEIJING HONG KONG SHANGHAI BUILDING STRENGTH SHAPING GROWTH ANNUAL REPORT 2015/2016 OVERVIEW 01 Building Strength GATEWAY CORPORATE PROFILE Shaping Growth PLAZA 02 Financial Highlights Beijing Listed on the Singapore Exchange Securities 04 Letter to Unitholders Trading Limited (“SGX-ST”) on 7 March 2013, 10 Year in Brief FY15/16 Mapletree Greater China Commercial Trust (“MGCCT”) is the first and only real estate STRATEGY investment trust (“REIT”) that offers investors the 12 Strategy 14 Nurturing Value opportunity to invest in best-in-class commercial 16 Maintaining Stability properties situated in prime locations in both 18 Driving Growth 1 Hong Kong and China. MGCCT is also the fourth 20 Pursuing Sustainability REIT sponsored by Mapletree Investments Pte Ltd (“MIPL” or the “Sponsor”), a leading real estate PERFORMANCE development, investment and capital management 22 Property Portfolio company headquartered in Singapore. 34 Unit Price Performance 35 Financial Review As of 31 March 2016, MGCCT has a portfolio 40 Operations Review of three commercial assets, Festival Walk, 44 Independent Market Research Gateway Plaza and Sandhill Plaza, with a total lettable area of approximately 2.6 million square feet and GOVERNANCE & combined valuation of S$5,922.5 million2. Festival SUSTAINABILITY Walk is a landmark territorial retail mall with an office 57 Trust Structure component located in Hong Kong. Gateway Plaza 58 Organisation Structure 60 Board of Directors is a premier Grade-A office building with a podium 64 Management Team area in Beijing, China. Sandhill Plaza is a premium (Corporate) quality business park development situated in 67 Property Management FESTIVAL Zhangjiang Hi-tech Park, Pudong, Shanghai. Team (Overseas) WALK 69 Risk Management Hong Kong 72 Investor Relations MGCCT is managed by Mapletree Greater China 74 Corporate Governance Commercial Trust Management Ltd. (“MGCCTM” or Report the “Manager”), a wholly-owned subsidiary of MIPL. 86 Sustainability Report To better align with investors’ interest, MGCCT is also the first Singapore-listed REIT to introduce a FINANCIALS & OTHERS management fee structure that is based on distributable 97 Financial Statements income and distribution per unit (“DPU”) growth, 145 Statistics of Unitholdings rather than assets under management (“AUM”) 147 Interested Person Transactions and net property income (“NPI”). 148 Notice of Annual General Meeting 151 Proxy Form Corporate Directory 1 Hong Kong refers to the Hong Kong SAR (Special Administrative Region). 2 Valuation on each property was carried out by Colliers International (Hong Kong) Limited as of 31 March 2016. ANNUAL REPORT 2015/2016 1 OVERVIEW SANDHILL PLAZA Shanghai STRATEGY PERFORMANCE GOVERNANCE & SU & GOVERNANCE BUILDING stainabi STRENGTH L SHAPING ity GROWTH FINANCIA In 2015, Mapletree Greater China Commercial Trust (MGCCT) embarked on a new phase of growth L with the acquisition of Sandhill Plaza in Shanghai, O & S strengthening our portfolio of best-in-class assets thers comprising Festival Walk in Hong Kong and Gateway Plaza in Beijing. Their quality and strategic locations enable the portfolio to maintain a consistently high occupancy level. With a proactive and disciplined approach towards asset, portfolio and capital management, the Manager will continue to shape further growth and capture sustainable returns for MGCCT’s investors. 2 MAPLETREE GREATER CHINA COmmErcIAL TrUST FINANCIAL HIGHLIGHTS Net Gross Property Revenue S$336.6m Income S$277.5 m FY15/16 FY15/16 19.7% 21.0% year-on-year year-on-year (S$ million) (S$ million) 400.0 280.0 277.5 350.0 245.0 336.6 229.3 300.0 210.0 204.3 281.1 250.0 252.5 175.0 200.0 140.0 150.0 105.0 100.0 70.0 50.0 35.0 0 0 FY13/141 FY14/15 FY15/16 FY13/14 FY14/15 FY15/16 1 For a more meaningful comparison, the stub period from 7 to 31 March 2013 has been excluded. Distributable Distribution Income S$199.9m per Unit 2 7. 248 cents FY15/16 FY15/16 12.3% 10.8% year-on-year year-on-year (S$ million) (cents) 240.0 8 7.248 210.0 7 199.9 6.543 180.0 178.0 6 5.929 159.2 150.0 5 120.0 4 90.0 3 60.0 2 30.0 1 0 0 FY13/14 FY14/15 FY15/16 FY13/14 FY14/15 FY15/16 2 Available DPU for the financial year is calculated based on the income available for distribution for the year over the number of issued units as at the end of the year. ANNUAL REPORT 2015/2016 3 OVERVIEW Consistent Growth in Distributable Income (DI) and DPU1 since IPO Distributable Income DPU (S$ million) (cents) 100 1.923 2.0 1.854 STRATEGY 1.808 90 1.742 1.8 1.662 1.696 DISTRIBUTION PER UNIT 1.606 1.587 1.560 80 1.518 1.6 1.455 1.394 70 1.4 60 1.2 PERFORMANCE 53.0 50 49.5 51.0 1.0 Distributable Income 47.4 45.1 46.3 42.6 42.1 43.5 40 40.6 0.8 37.1 38.8 30 0.6 20 0.4 GOVERNANCE & SU & GOVERNANCE 10 0.2 0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY13/142 FY13/14 FY13/14 FY13/14 FY14/15 FY14/15 FY14/15 FY14/15 FY15/16 FY15/16 FY15/16 FY15/16 1 The DPU per quarter is calculated based on the income available for distribution for the quarter over the number of issued units as at the end of the quarter. 2 Quarter results for 1Q FY13/14 excludes the stub period from 7 to 31 March 2013. Distributable income for the period from 7 March to 30 June 2013 = $46.1 million. Total DPU for the period from 7 March to 30 June 2013 = 1.7337 cents. stainabi L ity Proactive Capital & Risk Management FINANCIA Average Term to Average All-in Maturity for Debt Cost of Debt AS OF 31 MARCH 2016 AS OF 31 MARCH 2016 % L 3.01 years 2.83 O & S thers Expected Percentage 1H FY16/17 4 DI MORE THAN of Debt Fixed 3 Hedged into SGD AS OF 31 MARCH 2016 77.0 % AS OF 31 MARCH 2016 70.0 % 3 Interest cost on 77.0% of the total debt was fixed. 4 For the period from 1 April to 30 September 2016. Portfolio Valuation Distribution Yield FY15/16 Based on closing unit 10.7% price of S$0.955 FY14/15: S$5.3b S$5.9 b on 31 March 2016 7.6 % 4 MAPLETREE GREATER CHINA COmmErcIAL TrUST LETTER TO UNITHOLDERS RIGHT MR FRANK WONG KWONG SHING Chairman and Independent Non-Executive Director LEFT Ms CINDY CHOW PEI PEI Executive Director and Chief Executive Officer DEAR UNITHOLDERS, On behalf of the Board of Directors of domestic consumption, while of the Manager, we are pleased to reducing reliance on manufacturing From IPO to the present MGCCT’s Annual Report and infrastructure investments. to Unitholders for the financial year end of March 2016, from 1 April 2015 to 31 March 2016 BUILDING STRENGTH & we have delivered (“FY15/16”). SHAPING GROWTH At MGCCT, we have maintained a cumulative DPU FY15/16 was a challenging year our focus on building strength of 20.112 cents at for businesses. The markets that and ensuring our assets remained a return of 21.6%. we operate in were not spared. resilient when navigating through In Hong Kong, the value of total retail challenging market conditions. Including a price sales was down 6.4%1 in FY15/16 We have undertaken prudent capital appreciation of compared to FY14/15. The continued and risk management and captured slowdown in inbound tourism, the the right opportunities to shape 2.7% over the period, uncertain economic outlook and future growth. MGCCT achieved the total return market volatility impacted local robust organic growth through consumption sentiment. China’s gross proactive asset management achieved amounted domestic product (“GDP”) growth of our two existing assets, to 24.3%. moderated to a 25-year low of 6.9% in 2015, as the ongoing reforms by the world’s second largest economy gravitated towards the expansion of 1 Figures are from the Hong Kong Census and Statistics Department’s Monthly Survey of Retail Sales Reports as the services sector and the stimulation published for the months of March 2015 and March 2016. ANNUAL REPORT 2015/2016 5 OVERVIEW and we established MGCCT’s Festival Walk presence in Shanghai through – A Favourite Mall our first acquisition of Sandhill Plaza Among Shoppers7 in June 2015. In FY15/16, Festival Walk delivered 14.6% and 15.5% growth in gross Through these efforts, MGCCT revenue and NPI respectively STRATEGY has delivered a third consecutive compared to FY14/15, despite year of good results since listing an increasingly challenging retail on 7 March 2013. Comparing FY15/16 market and ongoing renovations to the last financial year, portfolio at the cinema8, which resulted in gross revenue of S$336.6 million a moderate drop in retail sales increased by 19.7% and NPI of and footfall by 5.3% and 3.3% PERFORMANCE S$277.5 million was up by 21.0%. respectively, year-on-year. The mall Total distributable income in FY15/16 maintained its track record of 100.0% DISTRIBUTION was S$199.9 million, an increase of occupancy level for retail and office PER UNIT S$21.8 million (12.3%) compared to space as of 31 March 2016, and FY15/16 the previous financial year. The total achieved an average effective rental DPU of 7.248 cents1 for FY15/16 uplift of 37% for retail leases9 that translated to a distribution yield of expired during FY15/16 compared 7.