CRCT’s 4Q 2013 distributable income up 5.6% year-on-year
Underpinned by 15.2%1 growth in same-mall net property income
Singapore, 29 January 2014– CapitaRetail China Trust Management Limited (CRCTML), the manager of CapitaRetail China Trust (CRCT), announced today that it recorded distributable income of S$17.7 million for the period from 1 October to 31 December 2013 (4Q 2013), an increase of 5.6% over the S$16.8 million for 4Q 2012. This was achieved despite the closure of CapitaMall Minzhongleyuan for asset enhancement since July 2013.
Distribution per unit (DPU) for 4Q 2013 was 2.20 cents. Based on an annualised DPU of 8.73 cents and CRCT’s closing price of S$1.295 per unit on 28 January 2014, the annualised distribution yield for 4Q 2013 was 6.7%. Unitholders can expect to receive their DPU for 4Q 2013, along with their DPU of 2.13 cents for 3Q 2013, totalling 4.33 cents on 27 March 2014. The book closure date is 7 February 2014.
Mr Victor Liew, Chairman of CRCTML, said, “China’s economy grew 7.7% in 2013, spurred by 7.7% growth in the final quarter of the year and above the target of 7.5% growth for the whole year. Total retail sales for the year increased 13.1% to reach RMB23.4 trillion. Since taking over in early 2013, the new leadership in China has reaffirmed its commitment to reforms, including rebalancing the country’s economic growth towards a sustainable consumption driven model. As a China focused retail real estate investment trust, CRCT is well-positioned to benefit from the continued growth expected in China’s domestic consumption.”
Mr Tony Tan, CEO of CRCTML, said, “For the quarter under review, our portfolio of malls recorded robust growth of 15.2% in net property income (NPI), underpinned by strong rental reversions of 17.5%. Tenants’ sales at our multi-tenanted malls1 increased 10.5% year-onyear, while shopper traffic grew 3.9%. Asset enhancement works for CapitaMall Minzhongleyuan are progressing well and the mall is on track to reopen for business in the second quarter of this year. To date, we have secured or are in advanced negotiations for leasing commitments accounting for more than 70.0% of the mall’s total net lettable area.”
“With the completion of the acquisition of CapitaMall Grand Canyon on 30 December 2013, the mall will start contributing income from this year. Since assuming joint management of the mall in July 2013, we have grown the mall’s occupancy rate from 92.7% to 95.9% and recorded strong rental reversions averaging above 100.0%.
“With the portfolio fully operational by the second half of this year, we are confident that CRCT will progressively set new milestones in the coming quarters.”
Distribution Reinvestment Plan
Similar to the first half of 2013, CRCTML has elected to apply the Distribution Reinvestment Plan (DRP) established on 21 March 2013 to the distributions for the second half of 2013. The plan provides unitholders with the opportunity to receive distributions in the form of fullypaid new units in CRCT, instead of cash. Participation in the plan is optional, and unitholders can allocate all or part of their unitholdings if they choose to participate.
Through the DRP, unitholders will be able to increase their holdings in CRCT without incurring brokerage fees, stamp duties (if any) and other related costs. CRCT also benefits from unitholders’ participation in the plan as the cash, which would otherwise have been paid for distributions, can be retained to enlarge its working capital.
To encourage unitholders to participate in this round of DRP, CRCT will offer a 2.0% discount to the volume-weighted average trade price per unit of 10 market days up to the book closure date on 7 February 2014.
Summary of CRCT results
Periods: 1 October to 31 December (4Q) and 1 January to 31 December (FY)
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Revenue and net property income
In RMB terms
Gross revenue increased by RMB7.2 million, or 3.7% over 4Q 2012. This was mainly due to higher revenue growth at CapitaMall Xizhimen, CapitaMall Wangjing and CapitaMall Saihan, which was partially offset by the absence of contribution from CapitaMall Minzhongleyuan, which has been closed for asset enhancement since July 2013.
NPI was RMB126.5 million, 1.4% higher than 4Q 2012.
In SGD terms
Gross revenue for 4Q 2013 increased 8.9% year-on-year to S$41.2 million and NPI rose 6.6% year-on-year to S$25.8 million.