CapitaLand Retail China Trust's DPU up by 4.4% in 4th quarter

Capitaland Retail China Trust (CRCT) yesterday reported a 4.4 per cent rise in distribution per unit (DPU) to 2.59 cents for its fourth quarter ended Dec 31, up from 2.48 cents for the same period last year.

Gross revenue increased 6.7 per cent to $56.2 million, while net property income rose 5.2 per cent to $35.3 million.

Rental growth came mainly from CapitaMall Qibao and CapitaMall Saihan. This increase was partially offset by lower revenue from CapitaMall Wuhu, which saw a lower occupancy rate as it is undergoing tenancy adjustments, and by a one-off forfeiture of security deposits at CapitaMall Xizhimen.

The bottom line in Singapore dollar terms was stronger than in yuan terms because the Chinese currency appreciated against the Singapore unit during the quarter.

Mr Tony Tan, the chief executive of the trust's manager, noted that CRCT's gross revenue had crossed the one-billion-yuan mark for the first time.

  • AT A GLANCE

  • DISTRIBUTION PER UNIT

    2.59 cents (+4.4%)

  • GROSS REVENUE

    $56.2 million (+6.7%)

  • NET PROPERTY INCOME

    $35.3 million (+5.2%)

Meanwhile, portfolio occupancy remained high at 95.1 per cent as at Dec 31, while rental reversion for the full year was 8.1 per cent.

This was backed by brisk business, which saw annual tenants' sales increasing 11.6 per cent and shopper traffic expanding 1.8 per cent year-on-year.

"We will continue to strengthen our malls' tenant mix and uplift the shopping experience through continual asset-enhancement initiatives, to remain relevant and attractive to the communities we serve," Mr Tan said.

DPU for the full year was up 7.9 per cent at 10.6 cents, compared with 9.82 cents in 2014.

Based on CRCT's closing price of $1.43 yesterday, the distribution yield amounted to 7.4 per cent.

Unit holders can expect to receive their DPU of 2.59 cents for the fourth quarter along with their DPU of 2.64 cents for the third quarter, for a total of 5.23 cents, on March 30.

The book closure date is Feb 16.

Ann Williams

A version of this article appeared in the print edition of The Straits Times on February 05, 2016, with the headline 'CapitaLand Retail China Trust's DPU up by 4.4% in 4th quarter'. Print Edition | Subscribe