Saturday, October 24, 2009

CRCT distributable income rises in Q3

DPU of 2.02 cents as net property income rises 0.7%

CAPITARETAIL China Trust’s (CRCT) third-quarter distributable income inched up to $12.6 million from Q3 2008’s $12.4 million. The China retail trust of CapitaLand announced a distribution per unit of 2.02 cents, up from 2.01 cents.

CRCT, which owns eight retail mall properties located in five key cities in China, saw net property income rise 0.7 per cent to $18.3 million for the three months ended Sept 30, 2009, from $18.1 million for the year-ago period. As at Sept 30, the total asset size of CRCT was about $1.23 billion.

Gross revenue for Q3 2009 was $29.8 million, an increase of 5.4 per cent over Q3 2008. This was mainly due to the appreciation of the Chinese yuan against the Singapore dollar as well as the increase in occupancy rates in Xizhimen Mall and Xinwu Mall. This was partly offset by lower revenue in Wangjing Mall due to asset enhancement works; and Saihan Mall, which is currently still undergoing asset enhancement works.

During the quarter, CRCT implemented measures to re-position the malls for next year. In addition to proactive cost management, the tenant mix was changed to better meet shoppers’ demands. At one mall, Xinwu Mall, rental revenue improved after the introduction of more flexible lease structures through shortened leases and ‘right-sizing’ of retail space.

‘Our business model has proven to be resilient and we are confident that our strategies of fine-tuning the tenant mix, re-positioning of malls and asset enhancement initiatives have made us operationally stronger,’ said Wee Hui Kan, chief executive of CRCT’s manager. ‘This will position us in good stead for 2010 and we remain committed to ensuring a stable and sustainable distribution to unitholders.’

CapitaLand on Oct 5 said that it will spin off its $20.3 billion retail portfolio into a separate unit, and list it on the Singapore Exchange. CRCT will be held under the new unit (CapitaMalls Asia) in future, and will continue to enjoy the existing rights of first refusal it has from the group.

CRCT shares close unchanged at $1.19 yesterday.

Source: Business Times, 24 Oct 2009

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