CapitaLand Retail China Trust's Q1 DPU rises 2.7%

CAPITALAND Retail China Trust (CRCT) on Wednesday posted a distribution per unit (DPU) of 2.71 Singapore cents for its first quarter ended March 31, 2016, 2.7 per cent higher than what it paid out a year ago.

A weaker yen has eroded its gains. Gross revenue rose 1.9 per cent to S$55.6 million, but if denominated in yuan, it was a larger 2.5 per cent increase to 256.5 million yuan.

Similarly, net property income rose 6.2 per cent to S$36.7 million, but a 6.8 per cent rise to 169.4 million yuan.

Rental growth in CRCT's multi-tenanted malls was cited as the reason behind its rise in gross revenue. This was partially offset by a drop in revenue from CapitaMall Wuhu as it undergoes tenancy adjustments.

Based on an annualised DPU of 10.90 Singapore cents and CRCT's closing price of S$1.455 per unit on Wednesday, annualised distribution yield is 7.5 per cent.

Noting "mounting downward pressure" on China's economic growth, CRCT believes it is well-positioned to benefit from China's transition to a consumption-driven economy.

"We will continue with our disciplined approach to look for suitable opportunities to expand our market presence," it said on Wednesday.