CapitaLand Retail China Trust's Q4 DPU flat at 2.37 cents

CAPITALAND Retail China Trust's (CRCT) fourth-quarter distribution per unit stayed flat at 2.37 Singapore cents as net property income slipped during the period.

This came as income available for distribution for the fourth quarter rose 6.8 per cent to S$22 million.

The DPU for the fourth quarter includes an advanced DPU of 1.54 cents paid on Dec 21, 2017 for the period from Oct 1 to Dec 6. The remaining 0.83 cent will be paid out to unitholders on Feb 23, the Reit said. For the full 2017, distribution per unit will work out to 10.10 Singapore cents.

For the three months ended Dec 31, gross revenue shrank 4.6 per cent to S$54.1 million from the previous year. Net property income dropped 5.2 per cent to S$33.0 million from the year-ago period.

The decline in gross revenue was mainly due to the divestment of CapitaMall Anzhen on July 1 and lower revenue contribution from CapitaMall Grand Canyon due to disruptions to trading activities arising from an operational review by the authorities leading up to the 19th National Congress, CRCT said.

Property expenses for the quarter decreased by S$0.8 million, or 3.6 per cent compared the year ago period, mainly attributable to lower provision of property tax .

CRCT's portfolio consists of 10 malls primarily in China including CapitaMall Qibao in Shanghai.

Soh Kim Soon, chairman of the Reit's manager said: "In 2017, China's economy performed better than expected and consumption remains a key economic growth driver. We are positive that CRCT's portfolio of family-oriented shopping malls is well-placed to tap China's sustainable growth, rising disposable income and increasing consumer spend."

"CRCT has delivered a good set of results for fiscal 2017. This was underpinned by the contribution of CapitaMall Xinnan and the resilience of our core multi-tenanted malls, which have been keeping up with the changing needs of the population catchments through active lease management and keen shopper engagement," Tan Tze Wooi, CEO of Reit manager added.

CRCT units finished S$0.01 or 0.6 per cent higher at S$1.69 on Tuesday.