SINGAPORE - Capitaland Retail China Trust (CRCT) posted on Tuesday (Oct 25) a 10.6 per cent fall in distribution per unit (DPU) to 2.36 Singapore cents for the three months to Sept 30 from 2.64 cents a year ago.
Net property income (NPI) for the third quarter edged up 0.6 per cent to 161.28 million yuan. The softer NPI growth was partly due to the Beijing government's move to charging tax based on revenue with effect from July 1, which affected CRCT's malls in Beijing.
Excluding the impact of the additional taxes, NPI for the quarter would have been 7.4 per cent higher than a year ago.
In Singapore dollar terms, NPI dropped by a heftier 6.9 per cent to S$32.77 million because of yuan's weakening against the Singapore currency.
Based on an annualised DPU of 9.39 cents and CRCT's closing price of S$1.60 per unit on Oct 24, annualised distribution yield for the quarter was 5.9 per cent.
Said Victor Liew, chairman of the trust's manager, said CRCT remains positive on China's retail growth prospects because of China's continuing efforts to stimulate domestic consumption to drive economic expansion.
Mr Tony Tan, CEO of the trust's manager said its acquisition of Galleria, its first mall in the city of Chengdu will diversify CRCT's income. With the completion of the acquisition on Sept 30, Galleria will start contributing income from the fourth quarter of this year.