CLCT’s 9M gross revenue rises 7% on positive rental reversions
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Michelle Zhu
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CHINA real estate investment trust (Reit) Capitaland China Trust (CLCT) reported gross revenue of 1.4 billion yuan (S$272.3 million) for the first nine months ended Sep 30, 2022, rising 7 per cent from 9M 2021 gross revenue of 1.3 billion yuan on the back of positive rental reversions.
Net property income (NPI) came in at 970.8 million yuan (S$188.8 million) for 9M 2022, up 7.5 per cent from 903.4 million in 9M 2021.
In a business update on Monday (Oct 31), CLCT’s manager said the Reit’s new economy portfolio saw full contributions from business parks and logistics parks over the period.
As at end-September, occupancy for the business park portfolio stood at 94.3 per cent with a weighted average lease expiry (Wale) of 1.6 years by gross rental income (GRI), and 1.7 years by net lettable area (NLA).
Logistics parks booked an overall occupancy of 96.6 per cent. Its Wale by GRI and NLA was 1.3 years and 1.4 years, respectively.
Together with strong performance from sectors such as engineering and electronics, as well as broad-based higher rent per sq m for the new economy segment, this led to a positive reversion of +5.6 per cent for the new economy portfolio.
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The retail portfolio also achieved its first positive reversion of +4.9 per cent since the start of Covid-19, said the manager, boosted by the completion of CapitaMall Wangjing’s asset enhancement initiative. Occupancy as at end-September was 96.7 per cent, while Wale by GRI and NLA stood at 2.2 and 3.4 years, respectively.
For the Q3 ended September 2022, traffic for the retail portfolio was up 37.5 per cent quarter on quarter – while Q3 sales grew 33.7 per cent over the previous quarter. The manager also observed overall improvements for the retail portfolio post lockdowns in H1 of 2022.
Looking ahead, the manager believes CLCT’s alignment with China’s strategic policy directions well places the trust to capture growth opportunities across asset classes.
Units of the Reit closed down 0.5 per cent or S$0.005 at S$0.98 on Friday.
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