CRCT’s 3Q 2014 distributable income up 14.1% year-on-year
Distribution per unit increases 10.3%
Singapore, 24 October 2014– CapitaRetail China Trust Management Limited (CRCTML), the manager of CapitaRetail China Trust (CRCT), announced today that it achieved distributable income of S$19.5 million for the period from 1 July to 30 September 2014 (3Q 2014), an increase of 14.1% over the S$17.1 million for 3Q 2013.
Distribution per unit (DPU) for 3Q 2014 was 2.35 cents, an increase of 10.3% from the 2.13 cents for the corresponding period a year ago. Based on an annualised DPU of 9.32 cents and CRCT’s closing price of S$1.59 per unit on 24 October 2014, the annualised distribution yield for 3Q 2014 was 5.9%.
Mr Victor Liew, Chairman of CRCTML, said, “In the third quarter of 2014, China’s economy expanded 7.3% year-on-year and in the first nine months of the year, the country’s retail sales rose by 12.0% year-on-year to RMB18.9 trillion. Despite headwinds, China’s economy has maintained its momentum due to growth-enhancing stimulus, and we can expect more of such measures as the Chinese government works towards achieving sustainable growth. CRCT therefore remains positive on China’s long term economic prospects and consumption growth.”
Mr Tony Tan, CEO of CRCTML, said, “For the quarter, our portfolio of malls registered 31.5% growth in net property income (NPI), underpinned by new contribution from the acquisition of CapitaMall Grand Canyon and rental growth from the other multi-tenanted malls. Rental reversions at our multi-tenanted malls were 22.6 % – exceeding 20.0% for the third consecutive quarter – and occupancy across the portfolio remained high, at 97.6%. Tenants’ sales at our multi-tenanted malls increased 16.1% year-on-year, while shopper traffic grew 3.8%.”
“CapitaMall Xizhimen and CapitaMall Wangjing, our biggest revenue contributors, achieved 12.0% and 19.7% growth in their NPI respectively, after a series of tenant mix adjustments which saw the introduction of better performing tenants. Similarly, CapitaMall Qibao in Shanghai registered 34.0% growth in NPI, mainly due to the strong performance of new tenants which took over the space on Level 1 that used to be occupied by a mini-anchor. The on-going reconfiguration at CapitaMall Grand Canyon, which enabled the introduction of fashion brands such as Ochirly and Charles & Keith, as well as popular food chains such as U-Ding and Royal Chicken, has also provided rental uplift.”
“Zhongshan Avenue, Wuhan – along which CapitaMall Minzhongleyuan is located – was closed on 20 August 2014 to facilitate the construction of subway Line 6 linking Hankou and Hanyang. Although the road closure, expected to last two years, will impact its NPI, CapitaMall Minzhongleyuan stands to benefit from greater accessibility once subway Line 6 becomes operational by end-2016. It will also enjoy proximity to the Jianghan Road subway interchange for Line 2 and Line 6, which is a critical transport hub linking Hankou, Hanyang and Wuchang – the three main areas of Wuhan.”
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 was RMB253.7 million, 32.3% higher than 3Q 2013. This was mainly due to the new contribution from CapitaMall Grand Canyon – which accounted for 17.8% of the growth in total gross revenue; and rental growth from the other multi-tenanted malls. NPI was RMB159.3 million, 31.5% higher than 3Q 2013.
In SGD terms
Gross revenue for 3Q 2014 increased 30.2% year-on-year to S$51.4 million, and NPI rose 29.2% year-on-year to S$32.3 million. This was mainly due to a weaker RMB against SGD in 3Q 2014 compared to 3Q 2013.