PCRT – Lim & Tan

• Perennial China Retail Trust reported first quarter profit attributable to units of the trust of S$5.0 million, mainly due to the drawdown under the RMB226.5 million earn-out deed (“New Earn-out Deed”) for distribution to Unitholders.
  
• The available distribution per unit (DPU) for 1Q13 amounts to 0.95 cents, translating to an annualized dividend yield of 6.1%.
  
• Within its operational assets in Shenyang, the trust secured Guangcai Group, an antique wholesale, as a master-lease tenant in Shenyang Red Star Furniture Mall which would increase the mall’s occupancy to 93%. But the Shenyang Longemont Offices’ leasing commitments only stand at 32.0%.
  
• Perennial Jihua Mall is on track to open in 3Q 2013, whilst Perennial Qingyang Mall is on target to open in either 4Q 2013 or 1Q 2014.
  
• Looking ahead, the key catalyst for the stock would be how well the trust could execute its ramp-up strategy.