CapitaLand China Trust posts 8.8% drop in H1 DPU to 3.74 cents after forex hit
Sign up now: Get ST's newsletters delivered to your inbox
One of CapitaLand China Trust's prime logistics assets in Chengdu. The Reit's half-year results took a hit from foreign currency translation.
PHOTO: CAPITALAND INVESTMENT
Mia Pei
SINGAPORE - CapitaLand China Trust’s distribution per unit (DPU) fell by 8.8 per cent to 3.74 cents for its first half ended June, from 4.1 cents the year before.
Financials of the real estate investment trust (Reit) for the six-month period took a hit from foreign currency translation, as the Singapore dollar grew stronger against the renminbi (RMB), the manager said on Thursday.
Gross revenue fell 7.4 per cent to $184.5 million from $199.3 million in the year-ago period. In RMB terms, gross revenue was up 0.8 per cent on the year to 947.8 million yuan, from 940.3 million yuan, supported by a stronger performance in the Reit’s retail portfolio.
This was partially offset by lower contributions from Singapore-Hangzhou Science and Technology Park Phase I and II, as well as Chengdu Shuangliu Logistics Park. Occupancy rates of these properties fell.
Notably, Chengdu Shuangliu Logistics Park’s occupancy rate dropped 22.9 percentage points to 67.6 per cent as at June 30, compared with the year before.
Gross revenue was also hurt by the ongoing repositioning and tenancy adjustment at CapitaMall Xinnan, and the closure of CapitaMall Qibao at the end of March 2023.
Meanwhile, net property income (NPI) fell 7.4 per cent on the year to $129.2 million, from $139.5 million. In RMB terms, NPI was up 0.8 per cent to 663.7 million yuan, from 658.3 million yuan.
The rise in NPI was boosted by gains in the Reit’s retail portfolio, but partly offset by lower contributions from its new economy portfolio, the manager said.
The results brought total income available for distribution to $63.1 million, down 12.7 per cent year on year from $72.3 million. The distribution will be paid out on Sept 25, after the record date on Aug 4.
As the Chinese market is recovering from the Covid-19 pandemic woes, the Reit’s new retail concepts and tenant offerings attracted higher footfall, leading to higher tenant sales, said Mr Tan Tze Wooi, chief executive of CapitaLand China Trust’s manager.
“The major asset enhancement initiatives at CapitaMall Grand Canyon and Rock Square are under way as planned, and their progressive completions from third quarter onwards will further enhance income contributions in the second half of financial year 2023.”
CapitaLand China Trust units closed down one cent, or 1 per cent, at $1.04 on Thursday. THE BUSINESS TIMES
