SINGAPORE (Apr 26): The manager of CapitaLand Retail China Trust (CRCT) has declared a distribution per unit of 2.75 cents for 1Q18, 0.4% higher than the 2.74 cents declared in 1Q17.
Based on CRCT’s closing price of $1.55 on Thursday, the annualised distribution yield for the quarter was 7.2%.
Gross revenue in 1Q18 decreased by 7.9% to $55.4 million mainly due to loss of contribution from CapitaMall Anzhen which was divested with effect from July 1 2017. Lower revenue at CapitaMall Grand Canyon was due to restriction to some trading activities at the atrium, and has been mitigated by the savings in operating expenses, while CapitaMall Minzhongleyuan was affected by lower occupancy as a result of ongoing tenant mix adjustments.
Property expenses for 1Q18 decreased by 8.2% to $18.2 million. Excluding CapitaMall Anzhen, the property expenses decreased by $0.9 million compared to 1Q17. This was mainly due to lower property tax and maintenance expenses.
Net property income came in 7.7% lower at $37.2 million while distributable income came in at $26.7 million for 1Q18, an increase of 9.6% from $24.4 million a year ago.
In 1Q18, CRCT’s multi-tenanted malls registered a rental reversion of 12.8%. Portfolio occupancy as at March 31 remained at 95%. Tenants’ sales and shopper traffic for the quarter increased year-on year by 2.1% and 7.7% respectively.
Tan Tze Wooi, CEO of manager CapitaLand Retail China Trust Management, said since completing the acquisition of Rock Square on Jan 31, it has been strengthening the mall’s appeal through active tenant mix adjustments. In addition, the reconfiguration of the recovered space at CapitaMall Wangjing is on track and the space is almost fully leased. The manager has also been proactively curating new concepts in its malls that are refreshing and relevant to shoppers.
“Looking ahead, we will further build on our strong foundation and proactively look at further optimising our portfolio to create more value for unitholders,” adds Tan.
