CapitaLand Retail China Trust's NPI climbed 2.2% to $36.73m in Q3
The increase was driven by broad-based rental growth and better cost management.
CapitaLand Retail China Trust (CRCT) saw its net profit income (NPI) rise 2.2% to $36.73m (RMB181.86)in Q3 from $35.95m (RMB176.57) the previous year, an announcement revealed. However gross revenue slid 1.1% to $55.35m from $55.99m
Meanwhile, CMCT’s distributable income jumped 10.5% in Q3 to $23.65m, whilst its distribution per unit (DPU) inched up 1.7% to $0.241 cents in Q3 from $0.237 cents in 2017 according to its financial statement.
CRCT attributed its NPI increase to broad-based rental growth and effective cost management. Meanwhile, it blamed the closure of CapitaMall Wuhu following the exit of its anchor tenant and CapitaMall Grand Canyon’s revenue impact as a result of trading activity restrictions for the decrease in its revenue.
“Portfolio occupancy as at 30 September 2018 was a healthy 97.7% amd rental reversion for the quarter was a robust 12.1%,” CRCT’s CEO Tan Tze Wooi said.
CMCT’s NPI dropped 5.9% to $37.63m in Q2 which it blamed on the divestment of CapitaMall Anzhen and CapitaMall Grand Canyon’s low contributions, whilst its revenue was also down 4.6% to $56.28m.
Also read: CapitaLand Retail China Trust Q2 NPI dropped 5.9% to $37.62m
The increases in DPU and distributable income were underpinned by acquisitive growth from development Rock Square which registered strong rental reversions above 20% for the third consecutive quarter by bringing in 25 prominent brands in the Haizhu District.
CRCT remains positive in its outlook for its developments for the upcoming quarters.
“CRCT’s growth in Q3 2018 extends the positive momentum from our portfolio reconstitution,” Tan noted. “CRCT’s strong financial position will enable us to pursue acquisition opportunities to drive new growth whilst we continue with our active asset management strategy of extracting more value from existing properties.”