CRCT's NPI fell 18.6% to $65.28m in H1

It was affected by the absence of contribution from CapitaMall Erqi.

CapitaLand Retail China Trust (CRCT) saw its net property income (NPI) crash 18.6% YoY to $65.28m in H1 from $80.17m in H1 2019, according to an SGX filing. Likewise, gross revenue dipped 8.7% to $101.52m from $111.14m over the same period.

CRCT’s performance was impacted mainly by the disruptions to mall operations during China’s nationwide lockdown to combat COVID-19, and provision of a broad-based tenant relief package to assist with its tenants’ business recovery. NPI was also affected by the absence of contribution from CapitaMall Erqi, following the cessation of its master lease in Q4 2019 and its subsequent divestment in May.

However, the drop in NPI was partially mitigated by new contributions from CapitaMall Yuhuating, CapitaMall Xuefu, and CapitaMall Aidemengdun, which were acquired on 30 August 2019.

CRCT retained $1.8m, representing 5.0% of the income available for distribution to unitholders, in view of near-term market uncertainties. After which, distributable income in H1 was $37m, 27.7% lower YoY.

Distribution per unit (DPU) was declared at 3.02 cents. CRCT’s book closure date is 7 August, and unitholders can expect to receive their H1 DPU on 28 September.

CRCT also stated that they have a well distributed debt maturity, with a healthy average term to maturity of 2.75 years. All refinancing requirements in 2020 have been completed, the SGX filing said.

CRCT also hedged approximately 64.4% of its undistributed income into Singapore dollars. As at end-June 2020, its gearing was at 33.6%, well below the new regulatory limit of 50.0%.