CapitaRetail China Trust puts up strong Q2 show

CAPITARETAIL China Trust (CRCT) achieved an 8.8 per cent rise in distribution per unit (DPU) for the second quarter ended June 30 to 2.59 Singapore cents on the back of strong rental reversions and tenant sales. This translates to an annualised distribution yield of 6.6 per cent based on the unit price of S$1.58 on July 23.

Increased shopper traffic and tenant sales suggest that recent concerns over the impact of e-commerce in China are overblown, CRCT chief executive Tony Tan said yesterday.

The retail operator in China remains open to expanding its portfolio, which is worth 10.4 billion yuan (S$2.1 billion) as at June 30, by acquiring malls from its sponsor CapitaLand or external third parties, he told analysts and reporters. "But the asking price remains sticky on the upside," Mr Tan said, adding that there are not many distressed assets for the picking in Ch…