SINGAPORE (July 31): The manager of CapitaLand Retail China Trust (CRCT) has declared a 2Q19 DPU of 2.54 cents.
This is 3.8% lower compared to a year ago due to the absence of divestment gain of stake in CapitaMall Anzhen in 2Q18.
Excluding capital distribution from the divestment gain, 2Q19 DPU would have been 2.0% higher compared to a year ago.
In RMB terms, gross revenue in 2Q19 increased 1.9% to RMB275 million due to stronger rental growth from the multi-tenanted malls, offset mainly by lower revenue in CapitaMall Grand Canyon and CapitaMall Qibao. In SGD terms however, gross revenue in 2Q19 decreased by 1.9% due to stronger SGD against the RMB.
Net property income increased 7.3% to $40.4 million while distributable income from JV rose 23.6% to $2.5 million.
Income available for distribution rose 5% to $25.4 million.
CapitaLand Retail China Trust Management Limited (CRCTML) says 1H19 rental reversions averaged 7.5%.
An increase in shopper traffic and tenants’ sales was also seen in the malls in its portfolios, both which grew 6.7% in 1H19.
As at June 30, portfolio occupancy stood at 97% while gearing came in at 33.8%.
Tan Tze Wooi, CEO of manager CRCTML, says: “Despite global market headwinds and trade tensions, China’s economy registered steady growth at 6.2% for 2Q19, in line with market expectations. The continued rise in national urban disposable income per capita of 8.0% for the first half of 2019 indicates momentum in the increasing spending power of China’s middle class, a trend which CRCT malls are well-placed to benefit from.”
Units in CRCT closed 1 cent lower at $1.60 on Tuesday.
