CLCT sets record high NPI with 85.2%% YoY jump to $250.4m

This is the trust's highest annual NPI since its listing.

A record was broken as CapitaLand China Trust Management Limited, manager of CapitaLand China Trust, announced a net property income of $250.4m, or up 85.2% year-on-year (YoY). 

The group attributed this performance to contributions from its logistics and business park portfolios, 100% contribution from Rock Square, first full-year contribution from CapitaMall Nuohemule and lower rental relief.

Distributable income for the same period, meanwhile, was up by 70% YoY to $135.5m, whilst distribution per unit (DPU) was 8.73 cents, or a 37.5% increase. According to the group, the DPU performance was due to an enlarged unit base.

Also found in the results released by CLCT were results for the second half of 2021. NPI was up 86.1% to $130.1m, with the aforementioned acquisitions being the reason for this performance. Distributable income in the same period was at $71.4m, 67.4% higher on a YoY basis, setting an advanced distribution of 2.7 cents for the period of 1 July to 20 October 2021. A distribution of 1.80 cents was also observed for the period of 21 October to 31 December 2021. 

Based on CLCT’s closing price of $1.14, distribution yield for the financial year (FY) 2021 was 7.7%.

“In the last two years, we have been adding new economy assets and reconstituting CLCT’s portfolio in line with China’s focus on domestic consumption and innovation-driven growth, enhancing the overall quality of its portfolio. The transformed CLCT is now better positioned to capture opportunities in China’s future economy across multiple sectors and through market cycles,” commented Soh Kim Soon, Chairman, CapitaLand China Trust Management Limited.

In the same report, CLTC also registered a portfolio occupancy of 96.3% for its shopping malls as of 31 December 2021. FY2021 also saw a YoY increase of 16.1% to portfolio tenant sales and 9.3% increase in shopper traffic. 

For its economy portfolio, occupancy for its business parks and logistics assets were seen at 96.3% and 97.4%, respectively, as of 31 December 2021. Supporting this was CLCT’s tenant base in high growth sectors. 

Capital management for the group also showed a well-staggered debt maturity profile, with an average term to maturity of 3.4 years. Around 77% of CLCT’s total term loans are on fixed interest rates. 51% of undistributed income, meanwhile, was hedged by the group into Singapore dollars. Gearing of 37.7% was also recorded by CLCT.