SINGAPORE (Apr 24): The manager of CapitaLand Retail China Trust (CRCT) has declared distribution per unit (DPU) of 2.59 cents for the 1Q19 ended March, some 5.8% lower than DPU of 2.75 cents a year ago.
Income available for distribution to unitholders was 4.9% higher at $24.9 million in 1Q19, compared to $23.7 million a year ago.
However, after accounting for capital distribution, distributable amount to unitholders was $25.9 million in 1Q19, 3.1% lower than distributable amount of $26.7 million a year ago.
CRCT saw capital distribution of $1 million in 1Q19, related to the partial distribution of gains from the disposal of CapitaMall Anzhen, compared to capital distribution of $3 million a year ago.
1Q19 gross revenue rose 4.5% to RMB 279.6 million, from RMB 267.4 million. In Singapore dollar terms, 1Q19 gross revenue was $56.0 million, 1.1% higher than $55.4 million a year ago.
This was led by a 47.1% rise in other income to $3.7 million, on the back of higher income earned from atrium space, trolley carts and advertisement panels.
Total property operating expenses fell 11.2% to $16.2 million in 1Q19, from $18.2 million a year ago.
This is mainly due to the absence of land rental costs amounting to $1.5 million in 1Q18, as operating lease rental expenses associated with the lease contracts in CapitaMall Qibao and CapitaMall Minzhongleyuan have been replaced with net changes in fair value of investment properties and interest expense on lease liabilities. The change is the result of the adoption of a new lease accounting model effective Jan 1, 2019.
Consequently, net property income grew 7.0% to $39.8 million, from $37.2 million a year ago.
Distributable income from joint venture more than doubled to $2.6 million in 1Q19, from $1.2 million a year ago, on the back of CRCT’s 51% interest in Rock Square.
Earnings per unit (EPU) rose to 2.56 cents in 1Q19, compared to 2.02 cents a year ago.
As at end March, cash and cash equivalents stood at $159.3 million.
Based on all committed leases, excluding CapitaMall Wuhu, CRCT’s portfolio occupancy as at Mar 31, 2019, remained at 97.4%.
“China's economy expanded at an encouraging pace of 6.4% in 1Q19, with consumer demand showing signs of improvement. The fiscal stimulus rolled out by the Chinese government, which include business and individual tax cuts, is expected to boost consumer sentiments,” says Tan Tze Wooi, CEO of the manager.
“These developments bode well for CRCT, which has sustained its growth momentum into the new year through proactive asset management and value enhancement initiatives,” he adds.
In addition, Tan says the divestment of CRCT’s 51% stake in CapitaMall Wuhu to an unrelated third party will enable the trust to “pursue acquisition opportunities to drive new growth and further optimise CRCT’s portfolio”.
Units in CRCT closed 0.7% higher at $1.51 on Wednesday, before the announcement.
