CapitaLand Retail China Trust's Galleria, Chengdu. (Photo: CapitaLand Retail China Trust)CapitaLand Retail China Trust's Galleria, Chengdu. (Photo: CapitaLand Retail China Trust)

China-focused Singapore-listed retail REIT CapitaLand Retail China Trust has reported a DPU of 2.36 Singapore cents for its 3Q 2016, a fall of 10.6% from the 2.64 cents achieved in 3Q 2015.

Gross revenue for the period came in 8.5% lower year-on-year at SGD 50.6 million (USD36.3 million), while net property income (NPI) declined by 6.9% at SGD32.8 million.

Correspondingly income available for distribution came in at SGD20.56 million, 7.7% lower from the SGD22.3 million reported in 3Q 2015.

The REIT has attributed the results partly to a weaker RMB against SGD, performances of CapitaMall Minzhongleyuan and CapitaMall Wuhu, which are affected by road closures, and the Beijing government’s move to charge tax based on revenue from 1 July 2016.

“Excluding the impact of the additional taxes, NPI for 3Q 2016 would have been 7.4% higher than 3Q 2015”, said the REIT in its statement on 25 October.

The retail REIT has however indicated that it remains optimistic on its prospects for the quarters ahead, given that it will start seeing contributions from its newly acquired property, Galleria in Chengdu, from 4Q 2016.

“In view of China’s continuing efforts to stimulate domestic consumption to drive economic expansion, [CapitaLand China Retail Trust] remains positive on China’s retail growth prospects”, said Victor Liew, chairman of the REIT’s manager.

Units of CapitaLand Retail China Trust were last changed hands on the Singapore Exchange at SGD1.60.

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.