Gross revenue for 3Q 2014 was JPY 1,391 million, 3.7% higher than the forecast due primarily to better than expected tenant sales at Mallage Shobu. The revenue from Aeon Town Moriya, Aeon Town Suzuka, Luz Shinsaibashi, Luz Omori and NIS Wave I were largely in line with forecasts.
Increases in overall tenant sales and rental income were largely due to a combination of active marketing and promotional activities during the quarter and purchases ahead of the consumption tax increase on 1 April 2014. The increase in tenant sales was partly offset by the negative effect of heaviest snowstorms that hit Tokyo in the last 45 years, over 2 consecutive weekends in February 2014.
Net property income for 3Q 2014 was JPY 933 million, 12.3% higher than the forecast. The main positive variances were due to the increase in gross revenue and lower property operating expenses such as lower than expected property management expenses and utility expenses. Overall, property operating expenses were 10.3% lower than forecast which is a good sign.
Income available for distribution for 3Q 2014 was JPY 620 million, 7.4% higher than the forecast. The higher income available for distribution was mainly due to higher net property income. This was partially offset by realized exchange losses and lease incentives which were paid and capitalized to be adjusted to future revenue. Overall, the income available for distribution per unit for 3Q 2014 was Singapore 1.76 cents, 8% higher than the forecast.