CRCT’s 3Q 2015 distributable income up 14.2% year-on-year
Distribution per unit increases 12.3%
Singapore, 23 October 2015 – CapitaLand Retail China Trust Management Limited (CRCTML), the manager of CapitaLand Retail China Trust (CRCT), announced today that it achieved a distributable income of S$22.3 million for the period from 1 July to 30 September 2015 (3Q 2015), an increase of 14.2% over 3Q 2014.
Distribution per unit (DPU) for 3Q 2015 was 2.64 cents, an increase of 12.3% over the corresponding period a year ago. Based on an annualised DPU of 10.47 cents and CRCT’s closing price of S$1.50 per unit on 23 October 2015, the annualised distribution yield for 3Q 2015 was 7.0%.
Mr Victor Liew, Chairman of CRCTML, said, “China’s economy expanded 6.9% year-on-year in both the third quarter and first nine months of 2015, while retail sales in the first nine months of 2015 increased 10.5% year-on-year to RMB21.6 trillion. With the Chinese government reiterating its commitment to rebalance its economy by driving domestic consumption, CRCT remains upbeat about China’s retail growth prospects.”
Mr Tony Tan, CEO of CRCTML, said, “For the quarter under review, our portfolio of malls registered 9.1% growth in net property income (NPI) as it benefitted from a favourable exchange rate. Rental reversion for the quarter continued to be strong at 10.9%1, with the majority of our malls registering double digit growth. Portfolio occupancy as at 30 September 2015 was 94.8%, while tenants’ sales1 and shopper traffic1 for the quarter increased 12.7% and 2.4% respectively year-on year.”
“We continue to refresh and improve the trade mix within our multi-tenanted malls. CapitaMall Xizhimen is adding more children-related products and services to cater to growing demand from young families with children. A section of the mall’s Level 3 will be reconfigured into a vibrant kids’ zone and new tenants catering to the varied needs of children, such as apparel stores and enrichment schools, will be added. On the asset enhancement front, CapitaMall Wangjing will be commencing upgrading works to its façade in the coming months, and CapitaMall Grand Canyon is currently undertaking renovation works to improve its common amenities. All these initiatives will further enhance the overall appeal and shopping experience at our malls.”
Summary of CRCT results
Periods: 1 July to 30 September (3Q) and 1 January to 30 September (YTD)
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Revenue and net property income
In RMB terms
Gross revenue for 3Q 2015 was RMB251.8 million, 0.7% lower than 3Q 2014. This minor decrease was largely due to lower revenue from CapitaMall Minzhongleyuan and CapitaMall Wuhu, offset by rental growth in other multi-tenanted malls.
NPI was RMB160.3 million, 0.6% higher than 3Q 2014.
In SGD terms
Gross revenue for 3Q 2015 increased S$3.9 million – 7.5% higher than 3Q 2014. NPI rose 9.1% year-on-year to S$35.2 million. This was mainly due to the stronger RMB against SGD.