CRCT’s 4Q 2016 net property income increases 6.5%
Driven by first full quarter contribution from CapitaMall Xinnan
Singapore, 26 January 2017 – 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 RMB169.1 million for the period 1 October to 31 December 2016 (4Q 2016), 6.5% higher than the RMB158.9 million for the corresponding period last year (4Q 2015). The increase was driven mainly by the first full quarter contribution from CapitaMall Xinnan (formerly Galleria, Chengdu), which was acquired on 30 September 2016. NPI for the period 1 January 2016 to 31 December 2016 (FY 2016) was RMB669.8 million, 4.1% higher than the RMB643.5 million for the same period last year (FY 2015).
Distribution per unit (DPU) for 4Q 2016 was 2.37 cents. This brought the total DPU for FY 2016 to 10.05 cents, 5.2% lower than FY 2015. The lower DPU was mainly attributable to a higher property tax provision for Beijing malls due to a change from cost to revenue basis effective 1 July 2016, and a weaker RMB against SGD compared to a year ago. Excluding the impact of the additional tax provision and foreign exchange, DPU would have grown 5.8% year-on-year.
Based on CRCT’s closing price of S$1.42 on 25 January 2017, the distribution yield for FY 2016 was 7.1%. Unitholders can expect to receive their DPU of 2.37 cents for 4Q 2016, along with their DPU of 2.36 cents for 3Q 2016 totalling 4.73 cents, on 23 March 2017. The book closure date is 6 February 2017.
Mr Victor Liew, Chairman of CRCTML, said: “China’s economic growth of 6.7% in 2016 was within the target set by the Chinese government. Retail sales recorded a healthy year-
Mr Tony Tan, CEO of CRCTML, said: “FY 2016 signalled CRCT’s entry into Chengdu with the acquisition of CapitaMall Xinnan. Following the mall’s adoption of the CapitaMall branding on 31 December 2016, shoppers will experience more attractive marketing promotions given the synergy with the five other CapitaLand malls in Chengdu. Efforts to bring in new fashion and accessories brands are on track and leases signed in 4Q 2016 yielded robust rental reversions as high as 34%. We will be further optimising the retail space efficiency to maximise the potential of this well-established mall.
“In Wuhan, the reopening of Zhongshan Avenue and commencement of
“Since uplifting its image after a façade makeover, CapitaMall Wangjing has recorded strong tenants’ sales growth of more than 15% in 4Q 2016. Riding on the momentum, we will continue to bring in more innovative concepts, including a coworking facility operated by UrWork to meet the growing demand for coworking space.”
Distribution Reinvestment Plan
CRCTML has elected to apply the Distribution Reinvestment Plan (DRP) established on 21 March 2013 to the distributions for the period from 1 July to 31 December 2016. The plan, which is not mandatory, allows unitholders to receive distributions in the form of fully-paid new units in CRCT, instead of cash. Unitholders can allocate all or part of their
Through the DRP, unitholders will be able to increase their CRCT holdings 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 as 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 6 February 2017.
Summary of CRCT results
Periods: 1 October to 31 December (4Q) and 1 January to 31 December (FY)
4Q 2016 |
4Q 2015 |
|
FY 20161 | FY 2015 |
Change % |
|
Actual S$'000 | Actual S$'000 |
Actual S$'000 |
Actual S$'000 |
|||
Gross revenue2 |
56,696 | 56,238 | 0.8 | 214,372 | 220,334 | (2.7) |
Net Property income2 |
34,779 |
35,294 | (1.5) | 139,738 | 141,085 | (1.0) |
Income available for distribution |
20,623 | 21,848 | (5.6) | 86,732 | 89,219 | (2.8) |
Distribution per unit (DPU) (cents) | ||||||
For the period | 2.37 | 2.59 | (8.5) | 10.05 | 10.60 | (5.2) |
Annualised |
9.43 | 10.28 | (8.3) | 10.05 | 10.60 | (5.2) |
4Q 20161 |
4Q 2015 |
|
FY 2016 | FY 2015 |
Change % |
|
Actual RMB'000 | Actual RMB'000 |
Actual RMB'000 | Actual RMB'000 |
|||
Gross revenue |
275,420 | 253,268 | 8.7 | 1,027,473 | 1,005,035 | 2.2 |
Net Property income |
169,145 | 158,888 | 6.5 | 669,759 | 643,547 | 4.1 |
Footnotes:
1. Includes contribution from CapitaMall Xinnan, which was acquired on 30 September 2016.
2. Average exchange rate for RMB/SGD.
Revenue and net property income
In RMB terms
For FY 2016, gross revenue increased RMB22.4 million, or 2.2% over FY 2015. NPI grew RMB26.2 million or 4.1%.
In SGD terms
As a result of a weaker RMB against SGD, the FY 2016 gross revenue of S$214.4 million was 2.7% lower than FY 2015, while the NPI of S$139.7 million was 1.0% lower.