CapitaLand China Trust Q3 net property income rises 1.2% to $60.5 million
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The Reit's manager attributed income growth, in yuan terms, to a general recovery across its retail portfolio.
PHOTO: CAPITALAND
Michelle Zhu
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SINGAPORE – CapitaLand China Trust (CLCT) posted net property income (NPI) of 316.4 million yuan (S$60.5 million) for the third quarter ended September, up 1.2 per cent from 312.5 million yuan a year prior.
NPI in Singapore dollar terms, however, fell 8.4 per cent to $58.9 million from $64.3 million previously, due to a 10.5 per cent year-on-year depreciation of the renminbi against the Singapore currency.
CLCT’s manager on Friday attributed overall NPI growth, in yuan terms, to a general recovery across its retail portfolio, excluding CapitaMall Qibao and CapitaMall Shuangjing.
This comes as CapitaMall Qibao ceased operations ahead of its master lease expiration, while rent provisions were made at CapitaMall Shuangjing.
Excluding these two assets, the manager said third-quarter retail NPI would have risen 13.4 per cent year on year instead of 4.7 per cent.
As a result of CapitaMall Qibao’s closure and provisions made at CapitaMall Shuangjing, the China real estate investment trust’s gross revenue fell 1.9 per cent to 478.8 million yuan from 488.3 million yuan in the third quarter for financial year 2022.
CLCT’s retail portfolio achieved 97.8 per cent occupancy for the third quarter, which the manager underscored as a new high since the fourth quarter of financial year 2021.
Shopper traffic grew 35.3 per cent year on year, while tenant sales were 6.5 per cent above pre-Covid-19 levels against third-quarter financial year 2019 figures.
In the trust’s new economy portfolio, CLCT’s manager said business park occupancy was maintained at 90.8 per cent, despite lower business sentiments.
Retail performance continued to lead the trust’s overall portfolio recovery for the nine-month period, with overall nine month portfolio occupancy at 93.1 per cent.
Tenant sales grew 30.2 per cent and shopper traffic rose 33 per cent for the first nine months of the fiscal year.
The manager said CLCT’s retail portfolio is positioned to ride the recovery of domestic consumption, with well-staggered asset enhancement initiatives across multiple assets.
While the business park outlook remains conservative, it noted that recent government interventions and policy stimuli indicated that “things are stabilising”.
The manager expects continued supply pressure to keep its Shanghai logistics vacancy elevated in the short term, thus constraining rent growth in the logistics park space.
CLCT units ended Friday up one cent, or 1.25 per cent, at 81 cents. THE BUSINESS TIMES
