MNACT's NPI plummets 40% to $50.78m in Q3

The closing of Festival Walk for repairs dragged down its profits.

Mapletree North Asia Commercial Trust's (MNACT) net property income (NPI) crashed 40% YoY to $50.78m in Q3, the company announced. Gross revenue slumped 36.3% to $67.28m over the same period.

For its 9M period, NPI fell 10% to $220.57m whilst gross revenue slipped 8.9% to $277.67m.

The drop in revenue was attributed to lower revenue from Festival Walk, as the mall closed from 13 November 2019 to 16 January for repairs after it sustained damages during the ongoing unrest in Hong Kong.

The company also saw lower revenue from one of its Japan properties due to expiry of the single tenancy for the building and conversion into multi-tenancies, as well as from Gateway Plaza due to lower average occupancy.

Taking into account the distribution adjustments including the top-up for Festival Walk, the distributable income for declined 12.5% to $53.4m in Q3. This translates to a 13.3% drop in distribution per unit (DPU) to 1.671 cents.

As of the quarter, Festival Walk still took up nearly half or 43.1% of the company’s portfolio gross revenue. Gateway Plaza, Sandhill Plaza and the Japan properties comprised 30.2%, 9.5% and 17.2% of the revenue, respectively.