CRCT 1Q 2010 net property income up 7.5%

Company earned strong S$19mln NPI growth ushered by year-on-year growth of 25.5% at Xizhimen Mall.

CapitaRetail China Trust Management Limited (CRCTML), the manager of CapitaRetail China Trust (CRCT), announced on Friday net property income (NPI) of RMB93.9 million (S$18.86 million), resulting in income available for distribution of S$13.3 million for 1Q 2010. The distribution per unit (DPU) for the quarter will be 2.14 Singapore cents, which translates to annualised DPU of 8.68 Singapore cents, unchanged from 1Q 2009. Therefore, annualised distribution yield is 7.0%, based on CRCT's closing price of S$1.24 per unit on 23 April 2010, according to CRCTML press statement on Friday.

Mr Victor Liew, Chairman of CRCTML, commented, "China's economy is expected to grow 10.0% in 2010, supported by an anticipated strong growth in domestic consumption. During the quarter, retail sales of consumer goods in China (excluding motor vehicles) grew 16.0%2 year-on-year. The National Bureau of Statistics expects China’s gross domestic product growth rate in 2010 to surpass 8.7% in 2009. Retail sales in China are expected to continue to grow and this augurs well for our business in 2010."

Gross revenue and NPI grew 3.1% and 7.5% respectively year-on-year to RMB143.3 million (S$28.78 million) and RMB93.9 million (S$18.86 million). The NPI improvement was contributed by strong year-on-year organic growth of 25.5%, 88.0% and 11.1% respectively from Xizhimen Mall, Saihan Mall and Xinwu Mall.

Both gross revenue and NPI in Wangjing Mall and Qibao Mall declined during the quarter, due to active tenancy adjustments. We are taking advantage of lease renewals to reposition the malls by attracting more popular and stronger brands, and progressively replacing weaker tenants.

In SGD Terms Gross revenue for 1Q 2010 was S$29.5 million, 2.9% or S$0.9 million lower than 1Q 2009. This is largely due to a 6.2% depreciation of RMB against SGD in 1Q 2010 from 1Q 2009. NPI grew slightly by 1.2% or S$0.2 million year-on-year.
Mr Wee Hui Kan, Chief Executive Officer of CRCTML, said, "I am pleased with the operational performance of our portfolio with growth in both gross revenue and NPI in RMB terms. In particular, total tenant sales of specialty tenants improved by almost 20.0% year-on-year and 9.0% quarter-on-quarter."

"Our strategy of refining mall-positioning and tenancy mix to meet changing consumer demands continues to show results. Our committed occupancy rates stayed high at about 95.2%. We will continue to attract the right local and international tenants to grow with us and provide a unique shopping experience to our shoppers."