Singapore-listed Perennial China Retail Trust (PCRT) (SGX:N9LU) has reported a marginal rise in distributable income for the reporting period of January 2013 to 31 March 2013 - from S$10.6 million to S$10.9 million as compared to the corresponding quarter from 2012.

Perennial China Retail Trust has a market capitalisation of approximately S$696.2 million as at 23 April 2013

Accordingly PCRT has announced DPU for the period to be at 0.95 Singapore cents. On an annualised basis, the available DPU stands at 3.85 Singapore cents.

PRCT has attributed the slightly better performance to higher occupancy at the Shenyang Red Star Macalline Furniture Mall. The property has recently secured a second master lease and increased occupancy to 93 percent. On top of that several new developments such as a bus terminal and two five-star hotels are expected to commence operations very soon within this property. This is expected to increase human traffic and stabilise rental in the near future.

Meanwhile at the Perennial Jihua Mall in Foshan, leasing continued to strengthen with occupancy rate reaching about 77 percent. New tenants secured include Daiso, Disney, China Mobile, Bread n Butter, Saturday and Breadtalk. The mall is expected to commence operations in 3Q2013 so as to tie-in with the seasonal opening schedule of international brands that will operate at the mall. The mall is expected to commence business with more than 90 percent occupancy.

PRCT is Singapore's first and only China-focused trust that specializes in mainland Chinese retail properties.

At current prices, the DPU for PCRT represents a distribution yield of about 6 percent. Units of PCRT are currently trading on the SGX at S$0.64 and unit holders are expected to receive their dividend payments around the 30 September 2013.

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.