CRCT’s 1Q 2014 distributable income rises 13.2% year-on-year
Underpinned by 25.0% growth in net property income
Singapore, 24 April 2014 – CapitaRetail China Trust Management Limited (CRCTML), the manager of CapitaRetail China Trust (CRCT), announced today that it recorded distributable income of S$19.6 million for the period from 1 January to 31 March 2014 (1Q 2014), an increase of 13.2% over the S$17.3 million for 1Q 2013.
Distribution per unit (DPU) for 1Q 2014 was 2.40 cents, an increase of 3.9% from a year ago. On a quarter-on-quarter basis, DPU for 1Q 2014 grew 9.1% over 4Q 2013, as CapitaMall Grand Canyon made its first full quarter contribution. Based on an annualised DPU of 9.73 cents and CRCT’s closing price of S$1.46 per unit on 23 April 2014, the annualised distribution yield for 1Q 2014 was 6.7%.
Mr Victor Liew, Chairman of CRCTML, said, “China’s economy is well-positioned for sustainable growth over the long term. The country’s retail sales are expected to grow 14.5% this year as the Chinese government steers the economy towards consumption-led growth. Our malls are in a strong position to capitalise on the expected rise in domestic consumption.”
Mr Tony Tan, CEO of CRCTML, said, “For the first quarter of 2014, our portfolio of malls achieved robust growth of 25.0% in net property income (NPI), supported by a healthy rental reversion of 23.0% at our multi-tenanted malls. Tenants’ sales at our multi-tenanted malls increased 13.9% year-on-year, while shopper traffic grew 7.3% .”
“The better performance this quarter was due to strong organic growth from existing assets, which grew by 14.9%2 in NPI, and contributions from newly acquired CapitaMall Grand Canyon. As at 31 March 2014, CapitaMall Grand Canyon’s occupancy was 99.8%, an improvement over the 95.9% as at 31 December 2013. New tenants included popular sports brands such as Li Ning and Top Sports, and well-known restaurants such as Nanjing Impressions and Childhood Villas. We will continue to strengthen the mall’s tenancy mix.”
“Asset enhancement works for CapitaMall Minzhongleyuan are near completion. To date, we have secured or are in advanced negotiations for leasing commitments accounting for about 90.0% of the mall’s total net lettable area. The mall’s scheduled reopening in the second quarter of this year is expected to provide an additional uplift to our future earnings.”
Summary of CRCT results
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Revenue and net property income
In RMB terms
Gross revenue increased by RMB31.0 million, or 15.5%, compared to 1Q 2013. This was mainly due to the full quarter contribution from CapitaMall Grand Canyon and higher rental growth at the multi-tenanted malls, which was partially offset by the absence of contribution from CapitaMall Minzhongleyuan, which has been closed for asset enhancement since July 2013.
NPI was RMB155.6 million, 17.9% higher than 1Q 2013.
In SGD terms
Gross revenue for 1Q 2014 increased 22.4% year-on-year to S$48.1 million and NPI rose 25.0% year-on-year to S$32.3 million. This was mainly due to a stronger RMB against SGD in 1Q 2014 compared to 1Q 2013.