CLCT records 5.3% YoY net property income growth in FY23

This is thanks to the stronger performance of its retail portfolio.

CapitaLand China Trust’s (CLCT) net property income (NPI) posted a 5.3% year-on-year growth to reach $244.2m (RMB1.29b) in financial year 2023 on the back of the stronger performance of its retail portfolio.

In a disclosure, CLCT’s manager said the stronger performance of the company’s retail portfolio, which accounted for 75.9% of its assets under management, was partially offset by the lower constrictions from the economy portfolio.

In the second half alone, CLCT’s NPI grew 1-.5% YoY to reach $118.9m (RMB630m) supported by the improved operating conditions and the positive retail momentum due to higher occupancies and post-asset enhancement initiatives (AEI).

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“Despite market headwinds, CLCT continued to solidify its portfolio resilience. Through the progressive completion of well-timed AEIs across our portfolio, we have enhanced our income contributions and retail operating metrics, delivering improvements in occupancy, shopper traffic, and tenant sales,” said CLCT manager’s CEO Tan Tze Wooi.

Tan added that the decision to wind down the operation at CapitaMall Qibao and divest CapitaMall Shuangjing “at an attractive exit yield” is a move to optimise the company’s portfolios, adding that the move signifies its strategic commitment to growth opportunities. 

Meanwhile, its distributable income stood at $113.9m, with a distribution per unit of 6.74 cents. 

$1 = RMB5.30