CapitaLand China Trust has reported lower distribution per unit of 3.74 cents for 1HFY2023, down 8.8% from 4.1 cents paid for 1HFY2022, no thanks to unfavourable forex movements.
If the RMB, in which the portfolio generates its income, has held steady against the reporting currency Singdollar, DPU over the same period would have been up 2.9% y-o-y instead, says CLCT.
Based on CLCT’s closing price of $1.05 on July 26, the annualised distribution yield for 1HFY2023 was 7.1%.
Net property income, reported in Singdollar for the same period, was down 7.4% y-o-y to $129.2 million, while gross revenue was down by a similar quantum to $184.5 million.
If reported in RMB, net property income would have held steady, up 0.8% y-o-y to RMB663.7 million.
CLCT’s portfolio includes 11 malls, five business park properties and four logistics park properties. The assets cover a total gross floor area of 12 million sqm across 12 cities in China.
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CLCT says that it retail properties enjoyed further "positive trajectory" in 1HFY2023's operating metrics and "healthy leasing activity".
Tan Tze Wooi, CEO of the REIT's manager, says that new retail concepts and tenant offerings has attracted higher footfall, resulting in double-digit growth in tenant sales, with the leading malls surpassing pre-COVID levels in 2Q 2023.
Major asset enhancement initiatives at two of the malls, CapitaMall Grand Canyon and Rock Square are underway as planned and their progressive completions from 3QFY2023 onwards will further enhance income contributions in 2HFY2023.
“With the government expected to implement additional pro-business measures in 2HFY2023 to boost development and investments in the private sector, along with a focus on expanding domestic demand, our portfolio is well-positioned to capitalise on business and consumption flows as the overall macroenvironment and consumer confidence recover,” says Tan.
