SINGAPORE (Oct 23): The manager of CapitaLand Retail China Trust (CRCT) reported a 0.4% improvement in distribution per unit (DPU) of 2.37 cents for the 3Q ended September, from 2.36 cents a year ago.
Gross revenue increased by 10.5% to RMB 275.0 million in 3Q17, from RMB 248.8 million a year ago. In Singapore dollar terms, this was a 10.6% increase to $56.0 million, compared to $50.6 million a year ago.
This was mainly due to the contribution from CapitaMall Xinnan, which was acquired on Sept 30, 2016, as well as rental growth from the other multi-tenanted malls.
The increase was partially offset by lower revenue from CapitaMall Qibao due to competitions faced in the vicinity and no contribution from CapitaMall Anzhen with effect from July 1, 2017.
Property expenses for 3Q increased by 12.3% to $20.0 million, mainly due to inclusion of CapitaMall Xinnan.
Taxation more than trebled to $24.9 million in 3Q17, from $7.1 million a year ago.
Consequently, net property income increased by 9.7% to $36.0 million, from $32.8 million a year ago.
Income available for distribution rose 4.2% to $21.4 million, from $20.6 million a year ago.
This arose mainly from the inclusion of CapitaMall Xinnan, higher corporate tax recognised in 3Q17 as a result of higher profit, and related taxes paid on the gain on disposal of Anzhen SPV, which holds CapitaMall Anzhen.
“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,” says Tan Tze Wooi, CEO of the manager.
“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,” Tan adds.
Units of CRCT closed 1 cent higher at $1.685 on Monday.
