Stronger rental growth and lower operating expenses boosted CapitaLand Retail China Trust’s income by 10.7 per cent in the first quarter. According to CapitaLand Retail China Trust Management Limited (CRCTML), the manager of CRCT, net property income reached RMB198.9 million for the three months to March 31, up from RMB179.6 million in the same period a year earlier.
“China’s economy expanded at an encouraging pace of 6.4 per cent during the quarter, with consumer demand showing signs of improvement,” said Tan Tze Wooi, CRCTML’s CEO. “The fiscal stimulus rolled out by the Chinese government, which include business and individual tax cuts, is expected to boost consumer sentiments. These developments bode well for CRCT, which has sustained its growth momentum into the new year through proactive asset management and value enhancement initiatives.
During the quarter sales by CRCT’s tenants increased 9.8 per cent year on year, while shopper traffic grew 14 per cent. Portfolio occupancy remained high, at 97.4 per cent at the end of the period.
“This strong foundation will anchor CRCT’s performance as we forge ahead with our tenant remix strategy to draw more popular concepts,” he said.
Core income available for distribution to unitholders was S$24.9 million, 4.9 per cent higher than the first quarter of last year and 8.2 per cent higher than the fourth quarter of last year, with distributable income from joint ventures increasing 115.9 per cent year-on-year. The total distributable amount to unitholders was S$25.9 million.