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CapitaLand China Trust posts 30.2% lower 2H20 DPU of 3.33 cents and 35.9% lower FY20 DPU of 6.35 cents

Felicia Tan
Felicia Tan • 4 min read
CapitaLand China Trust posts 30.2% lower 2H20 DPU of 3.33 cents and 35.9% lower FY20 DPU of 6.35 cents
This brings FY2020 DPU to 6.35 cents, 35.9% lower than the 9.90 cents posted a year ago after capital distribution.
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The manager of CapitaLand China Trust (CLCT), formerly known as CapitaLand Retail China Trust (CRCT) has declared distribution per unit (DPU) of 3.33 cents for the 2HFY2020 ended December, representing 30.2% lower than DPU of 4.77 cents reported in the same period a year ago.

This brings FY2020 DPU to 6.35 cents, 35.9% lower than the 9.90 cents posted a year ago after capital distribution.

2HFY2020 distributable income stood at $42.7 million, 22.8% lower y-o-y, albeit 15.2% higher h-o-h as it included the release of $1.8 million income retailed in 1HFY2020. The distributable income also includes the $1.8 million of compensation received by CapitaMall Erqi received in FY2019. The higher h-o-h figures were also attributable to the improved business conditions in China during the second half of the year.

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Distributable income for the FY2020 also came in 25.2% lower y-o-y at $79.7 million.

In RMB terms, 2HFY2020 gross revenue fell 15.9% y-o-y to RMB545.2 million ($111.7 million) due to the restructuring of some leases extended to selected tenants to tide them through Covid-19.

The lower figure was also attributable to the absence of CapitaMall Erqi’s contribution post its divestment.

The decrease was slightly mitigated by incremental contributions from CapitaMall Yuhuating, CapitaMall Xuefu and CapitaMall Aidemengdun compared to a year ago, as these were acquired on Aug 30, 2019.

In SGD terms, gross revenue for the same period fell 14.2% y-o-y to $109.0 million.

2HFY2020 property expenses fell 6.6% y-o-y to $39.1 million due to the lower property taxes arising from lower revenue and other cost savings measures.

2HFY2020 net property income (NPI) in RMB terms stood 19.6% lower y-o-y to RMB349.6 million.

In SGD terms, NPI for the period stood 17.9% lower y-o-y at $69.9 million.

In RMB terms, FY2020 gross revenue fell 12.2% y-o-y to RMB1.06 billion mainly due to the rental reliefs extended and lease restructuring, lower effective portfolio occupancy rate, as well as the absence of CapitaMall Erqi’s contribution.

In SGD terms, FY2020 gross revenue fell 11.6% y-o-y to $210.5 million.

FY2020 property expenses increased 3.5% y-o-y to $75.3 million due to the inclusion of expenses of CapitaMall Yuhuating, CapitaMall Xuefu and CapitaMall Aidemengdun.

FY2020 NPI fell 18.8% y-o-y to RMB678.2 million or 18.2% y-o-y to $135.2 million in SGD terms.

As at Dec 31, 2020, cash and cash equivalents stood at $208.4 million, higher than the $139.9 million a year ago, due to the consolidation of 100% Rock Square on Dec 30, 2020.

Portfolio effective occupancy rate was down 4.4 percentage points y-o-y to 94.7% as at Dec 31, 2020 in 2HFY2020 due to tenancy adjustment downtime. The rate remained stable q-o-q.

The REIT reported weighted average lease expiry (WALE) of 2.4 years by gross rental income (GRI) and 3.7 years by net lettable area (NLA).


SEE: CapitaLand Integrated Commercial Trust issues HK$713 mil notes with 2.53% p.a. coupon due 2033

Unitholders will receive 0.58 cents per unit for the period between Nov 26, 2020 and Dec 31, 2020. The advanced distribution of 2.75 cents per unit for the period from July 1, 2020, to Nov 25, 2020, was paid on Dec 4, 2020.

“While Covid-19 risks remain, China has demonstrated decisive management of resurgent infections and vaccine roll-out. Coupled with targeted fiscal and monetary policies, China has been able to sustain its recovery momentum and maintain strong fundamentals as an attractive investment market. Moving forward, China’s focus on domestic consumption and innovation-based industries will bode well for CLCT’s expanded and long-term business strategies in China,” says Soh Kim Soon, chairman of the manager.

“2020 was a challenging yet transformative year for CLCT. While navigating an evolving business landscape changed by Covid-19, we also ushered in a new chapter of growth after expanding our investment mandate,” says Tan Tze Wooi, CEO of the manager.

“We embarked on our largest acquisition for a portfolio of five business park properties in three new provincial cities – Suzhou, Xi’an and Hangzhou – and the balance 49% stake in Rock Square to improve portfolio resilience and diversification. Despite market volatility, we raised $326.1 million in our largest equity fund raising exercise, reflecting unitholders’ confidence and support in CLCT’s multi-stage growth strategy. As at end-December 2020, CLCT’s market capitalisation reached a new high of $2.1 billion, up 7.6% from a year ago.”

“We will continue to ride on the positive momentum to extract, unlock and create value from our enlarged portfolio. Plans include space reconfiguration in CapitaMall Yuhuating and redevelopment of the northern belt in Ascendas Xinsu Portfolio,” Tan adds.

Units in CLCT closed 1 cent lower or 0.7% down at $1.42 on Jan 28.

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