CRCT – BT

Strong Sing$ eats into CRCT’s Q3 earnings

Income available for distribution for the period up 3.2% at $13m

CAPITARETAIL China Trust (CRCT) posted improved third-quarter earnings yesterday, although the strengthening Singapore dollar took some shine off its results.

CRCT’s eight malls in China brought in a gross revenue of 147.2 million yuan (S$29.8 million) for the quarter ended Sept 30 – up 4.5 per cent from a year ago as some malls collected more rent. Net property income rose 9.1 per cent to 94.2 million yuan.

Converted to Singapore dollars, however, gross revenue slipped 0.2 per cent from last year to $29.8 million, while net property income increased by a smaller 4.3 per cent to $19 million.

‘The lower growth in Singapore dollar terms was due to the stronger Singapore dollar against yuan between Q3 2009 and Q3 2010,’ CRCT said.

Income available for distribution for Q3 rose 3.2 per cent year on year to $13 million. This sent distribution per unit (DPU) up 3 per cent to 2.08 cents.

The annualised DPU works out to 8.25 cents. Based on CRCT’s closing unit price of $1.25 on Sept 30, the annualised distribution yield is 6.6 per cent. The counter closed one cent up at $1.25 yesterday.

CRCT’s gearing as at Sept 30 was 33.7 per cent, slightly higher than the 33 per cent a year ago.

CRCT’s manager, CapitaRetail China Trust Management, is optimistic about prospects.

According to its chairman, Victor Liew, China’s total retail sales of consumer goods rose 18.2 per cent year on year for the first eight months of the year.

Tony Tan, CEO of the manager, also said that there had been ‘positive rental renewal momentum’ at CRCT’s malls.