CRCT – BT

CapitaRChina Q3 distribution income rises

Quarter’s DPU climbs to 2.12 cents as new mall helps lift revenue

CAPITARETAIL China Trust’s third-quarter income available for distribution rose 12.3 per cent to $14.6 million, buoyed by contributions from a recently acquired mall and higher revenue from its other malls.

Distribution per unit for the quarter rose to 2.12 cents, from 2.08 cents a year ago. Its revenue rose 13.7 per cent year-on-year to $33.8 million for the July-September period, while net property income increased by 13.8 per cent to $21.7 million. In yuan terms, gross revenue rose by 21.6 per cent, or 31.7 million yuan, to 179.0 million yuan.

Its revenue was lower than forecast when measured in Singapore dollars, due mainly to a stronger Singapore dollar against the yuan when compared with the rate used in the forecast. The Q3 revenue jump was due mainly to a 13.6 million yuan contribution from CapitaMall Minzhongleyuan in Wuhan, the property trust’s newest mall, which was acquired on June 30.

Still, on a comparable portfolio basis, the trust’s net property income grew by 13.4 per cent in yuan terms, demonstrating its ability to generate organic growth from its malls, said Tony Tan, chief executive of the trust’s manager.

The trust’s portfolio now comprises nine shopping malls in China – four in Beijing and one each in Shanghai, Zhengzhou, Huhhot, Wuhu and Wuhan. Its total asset size at end-September was some $1.4 billion.

Tenant sales at the trust’s five multi-tenanted malls rose by 21.1 per cent year-on-year in Q3, Mr Tan said. ‘We continue to register strong rental reversion of 11.9 per cent across the portfolio this quarter.’

For the nine months to end-September, distribution per unit was 6.42 cents, compared to 6.29 cents last year.

Gross revenue for the January-September period rose 7.4 per cent to $95.4 million, compared to last year, while net property income increased 8.3 per cent to $63.0 million.

‘China’s economic fundamentals remain strong and we continue to be positive on our prospects in China,’ Victor Liew, chairman of the trust’s manager, said. ‘China continues to be a key market for international and domestic retailers.’

The trust’s units last traded at $1.17 yesterday before the results were announced, unchanged from Thursday’s closing price.