CRCT’s 3Q 2017 net property income rises 9.7% year-on-year
Driven by contribution from CapitaMall Xinnan and rental growth in multi-tenanted malls
Singapore, 23 October 2017 – CapitaLand Retail China Trust Management Limited (CRCTML), the manager of CapitaLand Retail China Trust (CRCT), announced today that it achieved net property income (NPI) of S$36.0 million for the period 1 July to 30 September 2017 (3Q 2017), an increase of 9.7% over the S$32.8 million in 3Q 2016. For the period 1 January to 30 September 2017 (YTD Sep 2017), NPI rose 10.7% to S$116.2 million from S$105.0 million a year ago. The increase in NPI was mainly driven by the contribution from CapitaMall Xinnan – which was acquired on 30 September 2016 – and rental growth from the other multi-tenanted malls, partially offset by the divestment of CapitaMall Anzhen with effect from 1 July 2017.
Distributable income for 3Q 2017 was S$21.4 million, an increase of 4.2% over the S$20.5 million a year ago. Distribution per unit was 2.37 Singapore cents, 0.4% higher than 3Q 2016. Based on an annualised DPU of 9.40 Singapore cents and CRCT’s closing price of S$1.685 on 23 October 2017, the annualised distribution yield for 3Q 2017 was 5.6%.
Mr Tan Tze Wooi, CEO of CRCTML, said: “Underpinned by the strength of our multi-tenanted malls, we registered NPI growth in 3Q 2017 even after the divestment of CapitaMall Anzhen at the start of the quarter. In tandem with the divestment, we recovered approximately 4,700 square metres of space on Level 4 of CapitaMall Wangjing from the mall’s anchor tenant. Plans to transform the space to house experiential retail offerings that will inject greater vibrancy to the mall are progressing well, and the new retail space is targeted to open in phases from 2Q 2018.”
“During the quarter under review, we achieved a positive rental reversion of 7.5% for our multi-tenanted malls on the back of sustained efforts to optimise our tenant mix. For example, we added international brand MAC to CapitaMall Xizhimen to upgrade the mall’s beauty offerings. Popular technology brand Xiaomi opened at CapitaMall Grand Canyon to positive reception and contributed to improved sales and shopper traffic. By end-2017, Xiaomi will also open a store at CapitaMall Xizhimen, as part of a reconfigured unit that replaced a fast food restaurant. Our continued reconfiguration efforts have also yielded a positive rental reversion of more than 10% at CapitaMall Xinnan for the quarter. At CapitaMall Qibao, rooftop space on levels 4 and 5 will be activated as part of an expanded children’s learning playland, and renovations are expected to be completed by 1Q 2018. As we proactively refresh our malls’ offerings to keep abreast of changing consumer needs, we continue to be on the lookout for acquisition opportunities that will further enhance unitholders’ value.”
Summary of CRCT results1,2
Periods: 1 July to 30 September (3Q) and 1 January to 30 September (YTD)
Net property income3
Income available for distribution
Distribution per unit (DPU) (cents)
For the period
Net property income
Revenue and net property income
In RMB terms
For 3Q 2017, gross revenue increased by RMB26.2 million or 10.5% compared to 3Q 2016. This was mainly due to the contribution from CapitaMall Xinnan, which was acquired on 30 September 2016, and rental growth from the other multi-tenanted malls. NPI grew by RMB15.3 million or 9.5% over the corresponding period in 2016.
In SGD terms
Gross revenue for 3Q 2017 increased by S$5.4 million or 10.6% compared to 3Q 2016, while NPI grew by S$3.2 million or 9.7% year-on-year.
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, which holds CapitaMall Anzhen.