CapitaRetail China Trust gross revenue drops 2.8% in H1 2010

However, in RMB terms, CRCT’s gross revenue achieved a net income of RMB97.2 mln in the second quarter, which is up 8.8% from the same period in 2009.

CapitaRetail China Trust Management Limited (CRCTML), the manager of CapitaRetail China Trust (CRCT), said Friday that in RMB terms, CRCT recorded net property income of RMB191.1 million for 1H2010, up 8.1% compared to 1H2009. For 2Q2010, it has gained a net property income (NPI) of RMB97.2 million, up 8.8% against the same period last year, the release said.

However, CRCT said in SGD terms, gross revenue for 2Q2010 was S$29.6 million, 2.8% or S$0.9 million lower than 2Q2009. NPI grew slightly by 1.9% or S$0.4 million year-on-year to S$19.8 million.

The lower growth in SGD terms was due to the stronger SGD against RMB between 2Q2010 and 2Q2009. For 1H2010, gross revenue was 2.9% lower at S$59.1 million and NPI was 1.5% higher at S$39.1 million year-on-year.

But CRCT still recognise the income growth in terms of RMB.

In the statement, CRCT said it attributes the growth to the good performance of CRCT’s business model and the effectiveness of its proactive asset management strategy.

Mr Victor Liew, Chairman of CRCTML, said, “CapitaRetail China Trust has achieved a strong set of results. We continue to benefit from the Chinese government’s stimulus measures to boost domestic consumption and maintain stable and sustainable economic growth. Resilient domestic consumption continues to be a growth engine for China’s economy, which the International Monetary Fund projects will grow by 10.5% in 2010.”

Mr Tony Tan, Chief Executive Officer of CRCTML, said, “With our active lease management and close partnership with tenants, we have achieved a respectable set of results, backed by a strong year-on-year growth in tenant sales and shopper traffic of 28.8% and 14.4% respectively.”

Meanwhile, distribution per unit (DPU) for the second quarter is 2.07 Singapore cents, a 6.7% year-on-year increase compared to 2Q2009. Unitholders can expect to receive a distribution of 4.21 Singapore cents per unit for the first six months of the year. This is an annualised distribution yield of 6.6% based on CRCT’s closing price of S$1.25 per unit on 22 July 2010. The books closure date is 9 September 2010 and the distribution payment date is 24 September 2010.