CapitaLand Retail China Trust's Rock Square. (Photo: CapitaLand Retail China Trust)

Retail REIT CapitaLand Retail China Trust (CRCT) has reported distribution per unit (DPU) of 2.43 Singapore cents for its 3Q 2019, an increase of 4.3% year-on-year.

Net property income (NPI) for 3Q 2019 was RMB208.0 million, 14.4% higher than 3Q 2018.

Correspondingly, income available for distribution for the quarter was SGD26.9 million, up 17.6% year-on-year.

CRCT has attributed the results to higher organic growth from existing malls, as well as contribution from the newly acquired CapitaMall Xuefu, CapitaMall Yuhuating, and CapitaMall Aidemengdun.

“Amidst external pressures, China’s economy expanded by 6.0% in 3Q 2019”, noted CEO of the REIT’s manager, Tan Tze Wooi.

“Retail sales and urban household disposable income per capita for the first nine months of 2019 continued to grow, at 8.2% and 7.9% year-on-year respectively, indicating resilient consumer confidence”.

“Pro stability policies and measures implemented by the government to encourage domestic consumption will bode well for CRCT's malls”, he added.

Portfolio shopper traffic, and tenants’ sales grew by 8.3% and 11.8% year-on-year respectively.

Portfolio occupancy as at 30 September 2019 was at 97.1%.

As at end September 2019, CRCT’s gearing was at 37.2%.

Based on data from the Singapore REITs fundamentals table, CRCT currently gives a yield of about 6.35% based on its last done price.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.