CapitaLand China Trust's 9M NPI up 81.1% on retail and business park assets

CAPITALAND China Trust (CLCT) AU8U : AU8U 0%saw an 81.1 per cent year-on-year rise in net property income (NPI) for 9M 2021 to 903.4 million yuan (S$190.7 million), announced the China mall real estate investment trust's (Reit) manager in a Q3 business update on Tuesday (Oct 26).

This represents CLCT's highest 9M NPI since listing, said the manager, who attributed the growth to both the Reit's retail and business park assets which each booked 96.7 per cent occupancy for the period.

The positive performance from the retail segment comes on the back of a 100 per cent ownership of Rock Square and strong quarterly improvement in occupancy, as well as lower rental relief granted relative to the previous year.

This segment also saw a year-on-year improvement in sales and traffic, which grew 27.3 per cent and 22.6 per cent, respectively, over the first 9 months of 2021.

Operating metrics within the retail segment have reflected improvement in consumer sentiment as the normalisation trend maintains momentum, noted the manager, although the leasing environment remains competitive.

Meanwhile, the business park portfolio benefited from new contributions from the addition of business parks as well as a 100 per cent return to the office community. The manager said it is anticipating favourable leasing demand to continue for CLCT's business parks, having observed positive business confidence on the ground.

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Separately, on Oct 26, CLCT's manager announced several changes to its board and committees, including the appointment of CapitaLand Investment (China) chief executive officer (CEO) Puah Tze Shyang as a non-executive, non-independent director.

Puah currently oversees CapitaLand Investment's business in China, including investment, fund management as well as commercial management. Given his working experience in China and credentials, the manager said it believes Puah will be able to share his perspectives of the China market and contribute to the board's deliberations.

A nominating and remuneration committee (NRC) has also been formed as a new board committee within CLCT's manager.

Comprising chairman Soh Kim Soon and members Neo Poh Kiat and Geoffrey Lim Cho Pin, the NRC will assist the board in matters relating to board and committee appointments; review of the board's performance and directors' independence; setting a leadership development and succession plan and framework for the CEO; as well as remuneration for directors, CEO, and senior management executives of CLCT's manager.

Soh is also the board's chairman and non-executive independent director. Neo is a non-executive independent director of the board, while Lim is a non-executive, non-independent director.

Units of CLCT ended S$0.01 or 0.8 per cent higher at S$1.22 on Oct 25.

READ MORE: 

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