REAL estate investment trust (Reit) CapitaLand China Trust’s (CLCT) manager on Tuesday (Jul 30) announced that the Reit’s distribution per unit (DPU) declined by 19.5 per cent to S$0.0301 for the first half ended Jun 30, from S$0.0374 in the corresponding year-ago period.
This was due to decreased gross revenue for the period, which came in at S$173 million in Singapore dollar terms, down 6.3 per cent from S$184.5 million year on year.
In yuan terms, gross revenue slid 2.3 per cent to 925.9 million yuan, from 947.8 million yuan. The decrease in Singapore dollars was higher due to the weaker yuan against the Singapore dollar.
The Reit manager said the decrease was due to lower revenue from the logistics parks portfolio, as it had lower occupancy and rental rates. The logistics park portfolio had a revenue of S$4.4 million in H1 FY2024, declining 47.5 per cent from S$8.4 million in H1 FY2023.
There was also a reduced contribution from CapitaMall Shuangjing, which was divested in January 2024.
This fall was partially mitigated by higher revenue growth from the retail portfolio, primarily driven by the completion of asset enhancement initiatives (AEI) in CapitaMall Grand Canyon, Rock Square and CapitaMall Yuhuating, as well as proactive lease management in CapitaMall Xizhimen and CapitaMall Xuefu.
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Net property income fell 8.7 per cent to S$117.9 million, from S$129.2 million. This was due to higher property operating expenses in yuan terms, as there was a reduction in property tax incentives received by business parks in H1 2024.
Distributable income available to unitholders likewise decreased, falling 18.7 per cent to S$51.3 million, compared to S$63.1 million yoy.
For the first half DPU of S$0.0301, the record date is Aug 7, while the payment date is Sep 25, said the manager.
On a half-on-half basis, the DPU for H1 FY2024 increased marginally by 0.3 per cent compared to the H2 FY2023 DPU of S$0.03. This was due to higher income contribution from the retail portfolio and lower net financing cost.
Commenting on the results, Tan Tze Wooi, chief executive of CLCT’s manager, said: “By integrating new offerings and immersive customer experiences, CLCT achieved high retail occupancy of 97.8 per cent driven by strong yoy growth in shopper traffic and tenant sales at malls that recently completed AEI.”
He added that China’s government is likely to focus on stimulating domestic demand and promoting technological advancements among a series of reforms, and the Reit is positioned to capitalise on the growth opportunities from these policy directions.
Units of CLCT ended flat at S$0.68 on Monday.
