CapitaLand China Retail Trust boosts income by 11 per cent
CapitaLand Retail China Trust (CRCT) has boosted net property income (NPI) by 11.1 per cent in the first half year.
CapitaLand Retail China Trust Management Limited (CRCTML), which manages the trust, has reported income of RMB400 million (US$58 million).
The better performance was attributed to stronger rental growth across CRCT’s core multi-tenanted malls and lower operating expenses.
CRCT’s shopping malls are located in eight Chinese cities: CapitaMall Xizhimen, CapitaMall Wangjing, CapitaMall Grand Canyon and CapitaMall Shuangjing in Beijing; Rock Square (51 per cent interest) in Guangzhou; CapitaMall Xinnan in Chengdu; CapitaMall Qibao in Shanghai; CapitaMall Minzhongleyuan in Wuhan; CapitaMall Erqi in Zhengzhou; CapitaMall Saihan in Hohhot and CapitaMall Wuhu (51 per cent interest) in Wuhu. The properties have a combined gross rentable area of approximately 700,000sqm and as at June 30, were valued at US$2.25 billion.
“Despite global market headwinds and trade tensions, China’s economy registered steady growth at 6.2 per cent for the second quarter of this year, in line with market expectations,” said Tan Tze Wooi, CEO of CRCTML.
He said the continued rise in national urban disposable income per capita of 8 per cent for the first half of the year indicates momentum in the increasing spending power of China’s middle class, “a trend which CRCT malls are well-placed to benefit from”.
“Our proactive asset management efforts continue to yield positive results, with first-half year rental reversions averaging 7.5 per cent. New leases signed include popular brands and refreshing concepts that resonated with shoppers and enhanced our malls’ appeal as social spaces for families and young shoppers. Our effective leasing strategy has led to increases in shopper traffic and tenants’ sales, both of which grew by 6.7 per cent. Portfolio occupancy as at June 30 remained strong at 97 per cent.”