CRCT’s FY 2017 net property income increases 9.1%
Acquisition of Rock Square will serve as a significant growth driver going forward
Singapore, 31 January 2018 – CapitaLand Retail China Trust Management Limited (CRCTML), the manager of CapitaLand Retail China Trust (CRCT), announced today that it registered net property income (NPI) of RMB730.6 million for the period 1 January 2017 to 31 December 2017 (FY 2017), 9.1% higher than the RMB669.8 million for the same period last year (FY 2016). The increase was driven mainly by the first full-year contribution from CapitaMall Xinnan, which was acquired on 30 September 2016, and rental growth from the other multi-tenanted malls.
In SGD terms, distributable income for FY 2017 grew 5.1% to S$91.1 million. Total distribution per unit (DPU) for FY 2017 was 10.10 cents, 0.5% higher than FY 2016. Based on CRCT’s closing price of S$1.69 on 30 January 2018, the distribution yield for FY 2017 was 6.0%.
For the period 1 October to 31 December 2017 (4Q 2017), NPI was RMB161.4 million. In SGD terms, distributable income was S$22.0 million. Including the advanced DPU of 1.54 cents paid on 21 December 2017 for the period 1 October 2017 to 6 December 2017, Unitholders will receive a total DPU of 2.37 cents for 4Q 2017. The balance DPU for the quarter of 0.83 cents will be paid out on 23 February 2018. The book closure date is 8 February 2018.
Mr Soh Kim Soon, Chairman of CRCTML, said: “In 2017, China’s economy performed better than expected and consumption remains a key economic growth driver. We are positive that CRCT’s portfolio of family-oriented shopping malls is well-placed to tap China’s sustainable growth, rising disposable income and increasing consumer spend.”
Mr Tan Tze Wooi, CEO of CRCTML, said: “CRCT has delivered a good set of results for FY 2017. This was underpinned by the contribution of CapitaMall Xinnan and the resilience of our core multi-tenanted malls, which have been keeping up with the changing needs of the population catchments through active lease management and keen shopper engagement.”
“In the year, we strengthened the quality of our portfolio through our portfolio reconstitution strategy. We unlocked the value of master-leased CapitaMall Anzhen and acquired multi-tenanted Rock Square in Guangzhou, which has a longer balance tenure and stronger growth potential. The acquisition marks our diversification into another first-tier city, and creates new leasing synergies with the existing malls in our portfolio. Going forward, we expect Rock Square to be a significant driver of CRCT’s growth. We are also making good progress in transforming the recovered space at CapitaMall Wangjing into higher-yielding specialty stores. Retailers have shown keen interest to showcase new and unique experiential retail concepts at the recovered space, which is already more than 90% committed and on track to open progressively from 2Q 2018.”
“We remain focused in driving organic growth and extracting operational efficiencies through our proactive asset management approach. This is achieved through ongoing tenant mix adjustments and improved retail offerings and shopping environment to enhance the shopping experience. Looking ahead, we will continue to adopt a disciplined capital management approach and actively seek acquisition opportunities to create more value for Unitholders.”
Summary of CRCT results1,2
Periods: 1 October to 31 December (4Q) and 1 January to 31 December (FY)
|
4Q 2017 |
4Q 2016 |
Change % |
FY 2017 |
FY 2016 |
Change% |
|
Actual S$’000 |
Actual S$’000 |
Actual S$’000 |
Actual S$’000 |
||
Gross revenue3 |
54,107 |
56,696 |
(4.6) |
229,190 |
214,372 |
6.9 |
Net property income3 |
32,987 |
34,779 |
(5.2) |
149,212 |
139,738 |
6.8 |
Distributable amount to Unitholders |
22,0354 |
20,623 |
6.8 |
91,1364 |
86,732 |
5.1 |
Distribution Per Unit (“DPU”) (cents) |
||||||
For the period |
2.374,5 |
2.37 |
- |
10.104,5 |
10.05 |
0.5 |
Annualised |
9.40 |
9.43 |
(0.3) |
10.10 |
10.05 |
0.5 |
|
4Q 2017 |
4Q 2016 |
Change % |
FY 2017 |
FY 2016 |
Change% |
|
Actual RMB’000 |
Actual RMB’000 |
Actual RMB’000 |
Actual RMB’000 |
||
Gross revenue |
264,810 |
275,420 |
(3.9) |
1,122,164 |
1,027,473 |
9.2 |
Net property income |
161,441 |
169,145 |
(4.6) |
730,567 |
669,759 |
9.1 |
|
1 Jan 2017 to 6 Dec 20176 |
7 Dec 2017 to 31 Dec 2017 |
FY2017 |
Actual |
Actual |
Actual |
|
Gross revenue3 |
214,739 |
14,451 |
229,190 |
Net property income3 |
140,220 |
8,992 |
149,212 |
Distributable amount to Unitholders |
83,025 |
8,1114 |
91,1364 |
Distribution Per Unit (“DPU”) (cents) |
|||
For the period |
9.27 |
0.834 |
10.104 |
Footnotes:
1. The financial results include contribution from CapitaMall Xinnan which was acquired on 30 September 2016.
2. The financial results exclude CapitaMall Anzhen with effect from 1 July 2017 following the announcement on 27 July 2017 of the disposal of equity interest in CapitaRetail Beijing Anzhen Real Estate Co., Ltd (“Anzhen SPV”) which held CapitaMall Anzhen.
3. Average exchange rate for RMB/SGD
4Q 2017 |
4Q 2016 |
Change % |
FY 2017 |
FY 2016 |
Change % |
0.204 |
0.206 |
(1.0) |
0.204 |
0.209 |
(2.4) |
4. Includes partial distribution of the gain from the disposal of Anzhen SPV.
5. The DPU includes 1.54 cents per unit for the period 1 October 2017 to 6 December 2017, calculated based on 901,833,901 Units and 0.83 cents per unit for the period from 7 December 2017 to 31 December 2017, calculated based on 966,225,901 Units after the private placement.
6. Up to the period before the issuance of Units from private placement.
Revenue and net property income
In RMB terms
Gross revenue for FY 2017 increased by RMB94.7 million, or 9.2% over FY 2016. This was mainly due to the boost by the full-year contribution from CapitaMall Xinnan and rental growth from the other multi-tenanted malls. This was partially offset by lower revenue from CapitaMall Qibao and CapitaMall Wuhu, and the divestment of CapitaMall Anzhen with effect from 1 July 2017.
In SGD terms
Gross revenue increased by S$14.8 million or 6.9%. The increase in SGD terms was lower due to the stronger SGD against RMB.