One of the properties in CapitaRetail China Trust's portfolio.One of the properties in CapitaRetail China Trust's portfolio.

China-focused retail REIT, CapitaRetail China Trust (CRCT)(SGX:AU8U), has on 23 April announced a distribution per unit (DPU) of 2.64 Singapore cents for its 1Q 2015, an increase of 10% over the 2.40 Singapore cents for the corresponding period in 2014.

Distributable income of SGD22.2 million for the quarter is also 13% higher than the SGD19.6 million for 1Q 2014 while net property income (NPI) stands at SGD34.5 million, a 6.8% increase over the same period in 2014. This after tenants’ sales and shopper traffic for the quarter increased year-on-year by 14.3% and 1.6% respectively.

“For the quarter under review, CapitaMall Wangjing, CapitaMall Grand Canyon and CapitaMall Saihan posted strong double-digit growth in their NPI after strengthening their tenant mix”, said Tony Tan, CEO of the REIT’s manager, adding that CRCT’s malls are well positioned to ride on China’s growth in consumption.

Tan has also indicated that the REIT is looking for growth opportunities. “With the financial flexibility provided by our robust balance sheet, we will continue to look out for suitable acquisition opportunities to propel our next phase of growth”, he said.

CRCT’s gearing as at 31 March 2015 rose improved to 28.6% from 28.7% three months before. The REIT’s portfolio occupancy as at 31 March 2015 is at 95.1%.

CRCT has indicated that it remains upbeat for prospects in the quarters ahead. “With the Chinese government’s firm commitment to boosting domestic consumption as the key driver of economic expansion, CRCT remains positive on China’s long-term outlook and retail sales prospects”, said Victor Liew, Chairman of the REIT’s manager.

Units of CRCT are currently listed on the Singapore Exchange at SGD1.75.

One of the properties in CapitaRetail China Trust's portfolio.
One of the properties in CapitaRetail China Trust's portfolio.

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.