Analysts are recommending to “buy” Mapletree North Asia Commercial Trust (MNACT) despite a rather disappointing set of 1HFY2021 results, as a glimmer of hope emerges with the trust’s gradual improvement.

The trust recorded a 26% drop in its latest 1HFY2021 DPU to 2.876 cents from 3.887 cents last year.

This was as revenue fell some 9.6% y-o-y to $190.1 million, mainly due to the rental reliefs granted to tenants at Festival Walk (FW). Property operating expenses rose 24% y-o-y to $50.4 million due to expenses of MBP and Omori which were acquired in February 2020 and the higher average rates. Net property income (NPI) for the period dropped 17.7% y-o-y to $30.1 million.

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