CapitaLand China Trust records lower quarterly income as revenue slips
Revenue weakened across all three property segments, although shopper traffic and tenant sales increased over the nine-month period.
CapitaLand China Trust’s net property income reached 259.6 million yuan in the quarter ended September 30, a year-on-year decrease of 5.1 per cent. In its October 23 update, the manager reported quarterly revenue of 399.7 million yuan, a decline of 4.1 per cent.
Retail properties contributed 286.3 million yuan in quarterly revenue, falling 2.9 per cent. Revenue from business parks decreased 6.2 per cent to 100.6 million yuan, while logistics parks generated 12.8 million yuan, down 11.7 per cent.
For January to September, the trust recorded 820.6 million yuan in net property income, down 3.9 per cent, alongside revenue of 1.22 billion yuan, down 4.8 per cent. The manager linked the revenue decrease chiefly to CapitaMall Yuhuating’s divestment and reduced occupancy and rental rates at CapitaMall Xinnan, CapitaMall Grand Canyon, CapitaMall Wangjing and CapitaMall Aidemengdun.
The operating figures showed nine-month growth of 1.9 per cent in shopper traffic and 3.5 per cent in tenant sales. September 30 occupancy reached 97.2 per cent for retail properties, 85.7 per cent for business parks and 98.6 per cent for logistics parks. Each segment improved from a year earlier.
Debt totalled about S$1.78 billion on September 30. Aggregate leverage increased from 40.4 per cent at end-June to 41.1 per cent, while average debt costs declined from 3.06 per cent to 3.04 per cent. According to the manager, credit facilities costing effectively around 2.3 per cent refinanced a 600 million yuan bond carrying 3.8 per cent interest and maturing in October 2026.
