China-focused cross border Retail REIT CapitaRetail China Trust (CRCT) (SGX:AU8U) has announced a Net Property Income (NPI) of RMB132.0 million for 1Q 2013, up 4.6 percent from RMB126.2 million for the corresponding quarter in 2012.

CRCT is the first and only China shopping mall REIT in
Singapore, with a portfolio of nine income-producing shopping malls. Photo by CapitaRetail China Trust

Distributable income for 1Q 2013 was S$17.3 million, an increase of 4.2 percent over the S$16.6 million for 1Q 2012. Distribution per Unit (DPU) for 1Q 2013 inched up to 2.31 cents. Gross revenue for 1Q 2013 came in at S$39.3 million, an increase of 3.7 percent year-on-year. NPI was S$25.9 million, 1.8 percent higher than the previous year, mainly due to a stronger SGD against RMB.

Based on the annualised DPU of 9.37 cents and CRCT’s closing price of S$1.755 per unit on 19 April 2013, the annualised distribution yield stands at 5.3 percent.

Mr Victor Liew, Chairman of the Manager for CRCT said, “China has maintained its GDP growth target at 7.5 percent for 2013. With ongoing government measures to drive economic growth through domestic consumption, China retail sales are expected to grow 14.5 percent this year.”

Mr Tony Tan, CEO of the Manager for CRCT said, “Our tenant mix upgrade at CapitaMall Saihan and CapitaMall Wuhu resulted in double-digit growth at both malls. NPI grew 33.4 percent year-on-year at CapitaMall Saihan, and 23.3 percent at CapitaMall Wuhu. CapitaMall Qibao also achieved a healthy growth in NPI of 14.0 percent. The improved performance of our portfolio is a testament to our competency in changing our tenant mix to meet evolving consumer preferences.”

“On the capital management front, we have secured offers to refinance S$150.5 million debt due in June 2013 at favorable terms with cost of debt expected to be below 3 percent. The strengthened balance sheet will reinforce our capacity to capitalise on external growth opportunities", he added.

“Looking ahead, we will continue to strengthen the competitiveness of our malls. The asset enhancement of CapitaMall Minzhongleyuan, when completed next year, will provide additional uplift to our growth.”

Units of CRCT ended the day flat at S$1.76 on the day of the announcement.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.