CapitaLand’s China REIT addresses concerns over falling occupancies

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CapitaLand’s China-focused retail REIT, CapitaLand Retail China Trust (CRCT), has reported higher net property income (NPI) and distribution for its 2Q 2019.

However, some analysts have noticed falling occupancy numbers, and raised concerns about whether there are deeper underlying issues to REIT.

CRCT’s NPI of RMB201.1 million for 2Q 2019 represents an increase of 11.5% from RMB180.4 million for the same period in 2018.

The REIT’s income available for distribution rose 5.0% year-on-year to SGD25.4 million, of which contribution from Rock Square increased by 23.6% to SGD2.5 million.

Subsequently, its distribution per unit (DPU) for the quarter was 2.54 cents, and increase of 2.0% year-on-year.

However, the REIT’s overall occupancy for its multi-tenanted and master-leased malls, excluding CapitaMall Minzhongleyuan, has been on a downward trend since March 2019.

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