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CapitaLand China Trust reports 40.1% higher DPU of 4.23 cents in 1H21 on new contributions from acquisitions

Felicia Tan
Felicia Tan7/29/2021 07:48 AM GMT+08  • 3 min read
CapitaLand China Trust reports 40.1% higher DPU of 4.23 cents in 1H21 on new contributions from acquisitions
Unitholders can expect to receive their DPUs on Sept 27.
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The manager of CapitaLand China Trust (CLCT) has reported distribution per unit (DPU) of 4.23 cents for the 1HFY2021 ended June, 40.1% higher than the 3.02 cents reported in the 1HFY2020.

Gross revenue increased by 74.2% y-o-y to $176.9 million while net property income (NPI) surged 84.4% y-o-y to $120.3 million.

The higher figures were mainly due to new contribution from CLCT’s business park portfolio, 100% contribution from Rock Square and new contributions from CapitaMall Nuohemule.

This was offset by the absence of contribution from CapitaMall Minzhongleyuan and CapitaMall Saihan following their divestments on Feb 10 and June 7 respectively.

See also: Continue to 'buy' CapitaLand China Trust on improving consumer sentiment: OCBC

NPI was further improved by the strong operating performance at CLCT’s malls including lower tenant reliefs and higher rent collections, as well as higher occupancy and rental reversions at its business park properties.

Distributable income for the 1HFY2021 stood 72.9% higher y-o-y at $64.1 million, making this the highest growth rates in NPI and DI since CLCT’s listing in 2006.

The distributable income was spread over an enlarged unit base.

As at June 30, the REIT’s portfolio occupancy stood at 95.4% with a weighted average lease expiry (WALE) of 4.1 years by net lettable area (NLA) and 2.4 years by gross rental income (GRI).

Cash and cash equivalents as at end June stood at $236.4 million, while gearing stood at 35.9%, below the regulatory limit of 50%.

“In view of effective pandemic control and rising vaccination rates in China, further normalisation of the country’s economic activities is expected, which will lead to the expansion of consumer demand and business investments. With a portfolio strategically aligned to China’s economic focus on domestic consumption and innovation to drive greater self-sufficiency, CLCT is well-positioned to ride the country’s growth over the long term,” says Tan Tze Wooi, CEO of the manager.

““Post mandate expansion, we have seized new opportunities to position CLCT as the proxy for growth in China’s future economy. Gearing for a new phase of expansion, we are actively looking to add quality assets, with a focus on new economy asset classes such as business parks, logistics, data centre and industrial properties in the near term,” adds Tan.

“Organically, we will continue to enhance returns by extracting value from our existing assets through asset optimisation efforts.”

Unitholders can expect to receive their DPUs on Sept 27.

For more stories about where the money flows, click here for our Capital section

Units in CLCT closed 1 cent higher or 0.8% up at $1.35 on July 28.

Photo: CapitaLand

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