Wisdom Financial APP News, China Merchants Commercial REIT (01503) released the company business data for the three months ending on September 30, 2024. In the third quarter, the average occupancy rate of the office building portfolio of China Merchants Commercial REIT fund decreased by 1.8 percentage points to 92.9% month-on-month; the property's average occupancy rate increased by 3 percentage points to 91.4%.

In the third quarter, the office market in first-tier cities, especially the Grade A office market, remained under pressure. However, various economic stimulus measures have been successively announced and refined, stabilizing the overall market. Our office buildings have shown varying performance during this period but overall have been stable.

Regarding the occupancy rate, the Tech Tower and Tech Tower Phase II remain fully occupied, while the occupancy rate of the Digital Tower has slightly decreased. Some tenants of the New Era Plaza had leases expiring, leading to a decrease in the occupancy rate to 82.6%. The China Merchants Hang Hua Commerce and Trade Center saw an increase in occupancy rate from 91.1% to 98.4% by 7.3 percentage points due to new tenants moving in.

In terms of current rent, the rents for the Tech Tower, Tech Tower Phase II, and Digital Tower were generally stable compared to the previous quarter. The New Era Plaza had a slightly higher current rent than the market average due to vacated tenants, causing a slight decrease to RMB 152.20 per square meter. The China Merchants Hang Hua Commerce and Trade Center signed new tenants at lower market rents, reducing the current rent from RMB 290.10 per square meter to RMB 281.50 per square meter, a decrease of 3.1%.

Garden City had a breakthrough in operational performance this quarter, with the occupancy rate increasing to 91.4%. This was due to the adequate pre-leasing reserves and the good performance of the projects that moved in early at Garden City. A series of promotional activities at Garden City have had a significant impact in attracting customers, such as the shuttle bus to Shenzhen Bay Port and the 'China Merchants Cup Shenzhen-Hong Kong Children's Painting Competition' held during the Mid-Autumn Festival. With the increasing competition between shopping centers and the enhanced bargaining power of tenants, we will continue our proactive expansion strategy, launch a series of activities and promotions to further enhance the overall operational level.