CRCT’s 1Q 2015 distributable income rises 13.0% year-on-year
Distribution per unit increases 10.0%, driven by proactive mall management
Singapore, 24 April 2015 – CapitaRetail China Trust Management Limited (CRCTML), the manager of CapitaRetail China Trust (CRCT), announced today that it achieved distributable income of S$22.2 million for the period from 1 January 2015 to 31 March 2015 (1Q 2015) – 13.0% higher than the S$19.6 million for 1Q 2014.
Distribution per unit (DPU) for 1Q 2015 was 2.64 cents, an increase of 10.0% over the 2.40 cents for the corresponding period in 2014. Based on an annualised DPU of 10.71 cents and CRCT’s closing price of S$1.75 per unit on 24 April 2015, the annualised distribution yield for 1Q 2015 was 6.1%.
Mr Victor Liew, Chairman of CRCTML, said, “In the first quarter of this year, China’s economy expanded at a steady rate of 7.0%, in line with the government’s growth target of about 7.0% for the full year. With the Chinese government’s firm commitment to boosting domestic consumption as the key driver of economic expansion, CRCT remains positive on China’s long-term outlook and retail sales prospects.”
Mr Tony Tan, CEO of CRCTML, said, “For 1Q 2015, our portfolio of malls registered net property income (NPI) of S$34.5 million, a 6.8%1 increase over the same period in 2014. Rental reversion was 12.8% and portfolio occupancy as at 31 March 2015 remained healthy at 95.1%. Tenants’ sales and shopper traffic for the quarter increased year-on-year by 14.3% and 1.6% respectively.”
“For the quarter under review, CapitaMall Wangjing, CapitaMall Grand Canyon and CapitaMall Saihan posted strong double-digit growth in their NPI after strengthening their tenant mix. CapitaMall Wangjing enhanced its F&B offerings with new dining options while CapitaMall Grand Canyon and CapitaMall Saihan introduced more well-established brands that are popular with shoppers, such as fashion retailers Broadcast, Nike and UNIQLO. CapitaMall Wuhu is currently undergoing tenancy adjustments to achieve stronger positioning and better trade mix, while CapitaMall Minzhongleyuan will be introducing new concepts to attract shoppers during the road closure period. Our portfolio of malls remains resilient and well-positioned to ride on China’s consumption growth.”
“Looking ahead, we will continue to optimise the retail mix in our malls and strengthen their attractiveness to shoppers to enhance unitholder value. With the financial flexibility provided by our robust balance sheet, we will continue to look out for suitable acquisition opportunities to propel our next phase of growth.”
Summary of CRCT results
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Revenue and net property income
In RMB terms
Gross revenue for 1Q 2015 was RMB250.4 million, 8.1% higher than 1Q 2014. This increase was largely attributed to the rental growth from the multi-tenanted malls. NPI was RMB158.6 million, 1.9% higher than 1Q 2014.
In SGD terms
Gross revenue for 1Q 2015 increased by S$6.4 million, or 13.3% compared to 1Q 2014. NPI rose 6.8% year-on-year to S$34.5 million, mainly due to a stronger RMB against SGD.