CapitaLand Retail China Trust’s Q2 profits dip 1.5% to $35.5m

Blame it on forex losses.

With topline feeling the impact of forex losses, CapitaLand Retail China Trust (CRCT) closed 2Q16 with a net property income of $35.5m, a dip of 1.5% YoY.

According to a report by OCBC, revenue for the quarter slipped 5.1% to $51.5m, while DPU fell 4.4% YoY to 2.61 S cents. This is on back of weaker RMB against SGD, as revenue saw a 1.1% dip in RMB terms.

Further, with the implementation of China VAT reform in 1 May 2016, revenue from May to June is netted off against 5% VAT.

OCBC also notes that both CapitaMall Minzhongleyuan and CapitaMall Wuhu continue to experience headwinds, posting 30.4% YoY and 27.5% YoY fall in gross revenue contribution in RMB terms.

Moreover, occupancy for the quarter remained flat, inching up to 94.9% from Q1’s 94.6%. Portfolio rental reversion came in 5.1% higher for 6.3% of net leasable area that were up for renewal.