Will fast-growing CRCT still defy the downtrend?

The Singapore-based REIT believes it can continue its growth streak as its China malls benefit from rabid consumer spending.

In 1Q12, CaptaRetail China Trust saw its net property income grow 18.3%, the fifth consecutive quarter it posted double-digit growth. The prospect of continued strong performance is likely as government spurs on consumption and appliance spending, according to CRCT presentation slides for OCBC available via Singapore Exchange.

China consumption could balloon to around 15% in 2012 while retail sales could expand by up to 17% in 2012. In fact, consumption to overtake investment as China’s biggest driver of economic growth in 2012 for the first time in more than a decade, which should boost CRCT mall revenues.

CRCT is also banking on surge of home appliance sales following a one-year government programme that will allot RMB 26.5 billion to new purchases.