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Summary of CRCT Results1, 2
 
4Q 2017
4Q 2016
FY 2017
FY 2016
 
Actual
S$'000
Actual
S$'000
Change
%
Actual
S$'000
Actual
S$'000
Change
%
Gross Revenue3
54,107
56,696
(4.6)
229,190
214,372
6.9
Net Property Income3
32,987
34,779
(5.2)
149,212
139,738
6.8
Distributable amount to
Unitholders
22,0354
20,623
6.8
91,1364
86,732
5.1
Distribution Per Unit ("DPU") (cents)
For the period
2.374,5
2.37
-
10.104,5
10.05
0.5
Annualised
9.40
9.43
(0.3)
10.10
10.05
0.5
       
 
4Q 2017
4Q 2016
FY 2017
FY 2016
 
Actual
RMB'000
Actual
RMB'000
Change
%
Actual
RMB'000
Actual
RMB'000
Change
Gross Revenue
264,810
275,420
(3.9)
1,122,164
1,027,473
9.2
Net Property Income
161,441
169,145
(4.6)
730,567
669,759
9.1
 
1 Jan 2017 to 6 Dec 20176
7 Dec 2017 to 31 Dec 2017
FY 2017
 
Actual
S$'000
Actual
S$'000
Actual
S$'000
Gross Revenue3
214,739
14,451
229,190
Net Property Income3
140,220
8,992
149,212
Distributable amount to
Unitholders
83,025
8,1114
91,1364
Distribution Per Unit ("DPU") (cents)
For the period
9.27
0.834
10.104

Footnote:

  1. The financial results include contribution from CapitaMall Xinnan which was acquired on 30 September 2016.
  2. The financial results exclude CapitaMall Anzhen with effect from 1 July 2017 following the announcement on 27 July 2017 of the disposal of equity interest in CapitaRetail Beijing Anzhen Real Estate Co., Ltd (“Anzhen SPV”) which held CapitaMall Anzhen.
  3. Average exchange rate for RMB/SGD
4Q 2017
4Q 2016
Change %
FY 2017
FY 2016
Change %
0.204
0.206
(1.0)
0.204
0.209
(2.4)

  1. Includes partial distribution of the gain from the disposal of Anzhen SPV.
  2. The DPU includes 1.54 cents per Unit for the period 1 October 2017 to 6 December 2017, calculated based on 901,833,901 Units and 0.83 cents per Unit for the period from 7 December 2017 to 31 December 2017, calculated based on 966,225,901 Units after the private placement.
  3. Up to the period before the issuance of Units from private placement on 7 December 2017.
DISTRIBUTION & BOOK CLOSURE DATE
Distribution For 7 December 2017 to 31 December 2017
Distribution type Tax exempt income/Capital distribution
Distribution rate 0.83 cents per Unit
Book closure date 8 February 2018
Payment date 23 February 2018

INTRODUCTION

CapitaLand Retail China Trust (“CRCT”) was constituted as a private trust on 23 October 2006 under a trust deed entered into between CapitaLand Retail China Trust Management Limited (as manager of CRCT) (the “Manager”) and HSBC Institutional Trust Services (Singapore) Limited (as trustee of CRCT) (the “Trustee”), and listed on the Singapore Exchange Securities Trading Limited (“SGX-ST”) on 8 December 2006.

CRCT is a Singapore-based real estate investment trust (“REIT”) constituted with the investment objective of investing on a long term basis in real estate used primarily for retail purposes and located primarily in China, Hong Kong and Macau.

As at 31 December 2017, CRCT owns and invests in a portfolio of 101 shopping malls located in seven cities in China. The properties are CapitaMall Xizhimen, CapitaMall Wangjing, CapitaMall Grand Canyon and CapitaMall Shuangjing in Beijing; CapitaMall Xinnan in Chengdu; CapitaMall Qibao in Shanghai; CapitaMall Erqi in Zhengzhou; CapitaMall Saihan in Huhhot; CapitaMall Minzhongleyuan in Wuhan; and CapitaMall Wuhu in Wuhu in which CRCT has a 51% interest.

  1. Excludes CapitaMall Anzhen following the completion announcement on 15 September 2017 of the divestment of Special Purpose Vehicle holding CapitaMall Anzhen.
Statement of total return for the Group (4Q 2017 vs 4Q 2016)
 
Group
 
4Q 2017
S$'000
4Q 2016
S$'000
%
Change
 
Gross rental income
Other income1
50,573
3,534
52,763
3,933
(4.2)
(10.1)
 
Gross revenue
Land rental
Property related tax
Business tax
Property management fees2
Other property operating expenses3
54,107
(1,471)
(5,608)
(281)
(3,308)
(10,452)
56,696
(1,390)
(6,435)
(342)
(3,524)
(10,226)
(4.6)
5.8
(12.9)
(17.8)
(6.1)
2.2
 
Total property operating expenses
(21,120)
(21,917)
(3.6)
 
Net property income
Manager's management fees - Base fee
Manager's management fees - Performance fees
Trustee's fees
Audit fees
Valuation fees
Other trust operating expenses
Finance income5
Foreign exchange (loss)/gain – realised6
Finance costs
32,987
(1,669)
(1,326)
(104)
(101)
(50)
(764)
1,306
(375)
(5,795)
34,779
(1,739)
(1,450)
(107)
(119)
(52)
(488)
682
187
(5,904)
(5.2)
(4.0)
(8.6)
(2.8)
(15.1)
(3.8)
56.6
91.5
N.M.
(1.8)
 
Total return before changes in fair value of financial derivatives, investment properties and unrealised foreign exchange loss
Change in fair value of investment properties
Foreign exchange loss – unrealised

24,109

28,408
(991)

25,789

22,844
(599)

(6.5)

24.4
65.4
 
Total return before taxation
Taxation
51,526
(15,892)
48,034
(15,595)
7.3
1.9
 
Total return for the period after taxation
35,634
32,439
9.8
 
Attributable to:
Unitholders
Non-controlling interest

36,110
(476)

33,956
(1,517)

6.3
(68.6)
 
Total return for the period after taxation
35,634
32,439
9.8
 

Statement of total return for the Group (FY 2017 vs FY 2016)
 
Group
 
FY 2017
S$'000
FY 2016
S$'000
%
Change
 
Gross rental income
Other income1
212,859
16,331
200,164
14,208
6.3
14.9
 
Gross revenue
Land rental
Property related tax
Business tax
Property management fees2
Other property operating expenses3
229,190
(5,940)
(23,806)
(1,234)
(13,880)
(35,118)
214,372
(5,908)
(17,329)
(5,448)
(12,751)
(33,198)
6.9
0.5
37.4
(77.3)
8.9
5.8
 
Total property operating expenses
(79,978)
(74,634)
7.2
 
Net property income
Manager's management fees - Base fee
Manager's management fees - Performance fees
Trustee's fees
Audit fees
Valuation fees
Other trust operating expenses4
Finance income5
Foreign exchange loss – realised6
Finance costs
149,212
(6,973)
(5,948)
(423)
(408)
(202)
(579)
2,418
(636)
(23,465)
139,738
(6,257)
(5,663)
(398)
(453)
(195)
(864)
1,777
(927)
(21,212)
6.8
11.4
5.0
6.3
(9.9)
3.6
(33.0)
36.1
(31.4)
10.6
 
Total return before changes in fair value of financial derivatives, investment properties and unrealised foreign exchange gain/(loss)
Change in fair value of investment properties
Gain on disposal of subsidiary7
Foreign exchange gain/(loss) – unrealised

112,996

41,457
52,227
584

105,546

41,151
-
(1,049)

7.1

0.7
N.M.
N.M.
 
Total return before taxation
Taxation8
207,264
(64,214)
145,648
(41,641)
42.3
54.2
 
Total return for the period after taxation
143,050
104,007
37.5
 
Attributable to:
Unitholders
Non-controlling interest

144,696
(1,646)

106,614
(2,607)

35.7
(36.9)
 
Total return for the period after taxation
143,050
104,007
37.5
 

Footnote:

  1. Other income comprises mainly income earned from atrium space, trolley carts and advertisement panels.
  2. Includes reimbursement of costs to property manager.


 
Group
 
4Q 2017
S$'000
4Q 2016
S$'000
%
Change
Depreciation and amortisation
(Impairment losses)/write back on trade receivables, net
Plant and equipment written off
(382)
(77)
(45)
(504)
2
(74)
(24.2)
N.M.
(39.2)

 
Group
 
FY 2017
S$'000
FY 2016
S$'000
%
Change
Depreciation and amortisation
Impairment losses on trade receivables, net
Plant and equipment written off
(1,727)
(131)
(47)
(2,147)
(143)
(89)
(19.6)
(8.4)
(47.2)

  1. Includes reversal of over provision of other trust operating expenses.
  2. Finance income relates mainly to gain on interest rate swaps (“IRS”) and interest from bank deposits placed with financial institutions.
  3. Realised foreign exchange relates to loss on the repayment of the USD denominated shareholder’s loans interest, RMB and USD denominated dividend received from subsidiaries and sales proceeds received from the disposal of Anzhen SPV.
  4. This relates to gain arising from the disposal of Anzhen SPV.
  5. Includes under provision of taxation from prior years of $2.1 million in FY 2017 and withholding tax payment of $14.9 million on disposal of the equity interest in Anzhen SPV.
    Includes over provision of taxation from prior years of $0.4 million in FY 2016.

N.M. - not meaningful



Distribution statement for the Group (4Q 2017 vs 4Q 2016)
 
Group
 
4Q 2017
S$'000
4Q 2016
S$'000
%
Change
Total return for the period attributable to Unitholders before distribution
Distribution adjustments (Note A)
36,110

(17,775)
33,956

(13,333)
6.3

33.3
Income available for distribution to Unitholders
Capital distribution1
18,335
3,700
20,623
-
(11.1)
N.M.
Distributable amount to Unitholders
22,035
20,623
6.8
Comprises :
- from operations
- from Unitholders' contribution

150,207
(131,872)

(1,905)
22,528

N.M.
N.M.

- from capital distribution1
18,335
3,700
20,623
-
(11.1)
N.M.
Distributable amount to Unitholders
22,035
20,623
6.8
Note A
Distribution adjustments
- Manager's management fees (performance component payable in Units)
- Change in fair value of investment properties2
- Deferred taxation2
- Transfer to general reserve
- Unrealised foreign exchange loss2
- Foreign exchange capital loss – realised3
- Other adjustments2


1,326
(29,153)
9,244
(1,453)
991
851
419


1,450
(24,181)
9,857
(1,433)
412
-
562


(8.6)
20.6
(6.2)
1.4
N.M.
N.M
(25.4)
Net effect of distribution adjustments
(17,775)
(13,333)
33.3

Distribution statement for the Group (FY 2017 vs FY 2016)
 
Group
 
FY 2017
S$'000
FY 2016
S$'000
%
Change
Total return for the period attributable to Unitholders before distribution
Distribution adjustments (Note A)
144,696

(57,260)
106,614

(19,882)
35.7

N.M.
Income available for distribution to Unitholders
Capital distribution1
87,436
3,700
86,732
-
0.8
N.M.
Distributable amount to Unitholders
91,136
86,732
5.1
Comprises :
- from operations
- from Unitholders' contribution

134,196
(46,760)

13,033
73,699

N.M.
N.M.

- from capital distribution1
87,436
3,700
86,732
-
0.8
N.M.
Distributable amount to Unitholders
91,136
86,732
5.1
Note A
Distribution adjustments
- Gain on disposal of subsidiary, net of tax
- Manager's management fees (performance component payable in Units)
- Change in fair value of investment properties2
- Deferred taxation2
- Transfer to general reserve
- Unrealised foreign exchange loss2
- Foreign exchange capital loss – realised3
- Other adjustments2


(37,314)
5,995
(43,247)
21,129
(6,086)
(317)
851
1,729


-
5,663
(42,739)
19,357
(4,986)
652
-
2,171


N.M.
5.9
1.2
9.2
22.1
N.M
N.M.
(20.4)
Net effect of distribution adjustments
(57,260)
(19,882)
N.M.

N.M. - not meaningful

  1. This relates to the partial distribution of the gains from the disposal of Anzhen SPV.
  2. Excludes non-controlling interest’s share.
  3. This relates to the receipt of sales proceeds from the disposal of Anzhen SPV.

Statement of financial position of the Group as at 31 Dec 2017 vs 31 Dec 2016
 
Group
Trust
 
31 Dec 2017
S$'000
31 Dec 2016
S$'000
%
Change
31 Dec 2017
S$'000
31 Dec 2016
S$'000
%
Change
Assets
Investment properties1
Plant and equipment
Interests in subsidiaries
Trade and other receivables2
Financial derivatives3
Cash and cash equivalents4

2,431,181
2,962
-
37,131
436
186,515

2,628,353
4,034
-
12,829
2,114
136,137

(7.1)
(26.6)
-
N.M
(79.4)
37.0

-
-
1,326,045
25,562
436
9,630

-
-
1,416,194
360
2,114
1,661

-
-
(6.4)
N.M.
(79.4)
N.M.
Total assets
2,668,068
2,783,467
(4.1)
1,361,673
1,420,329
(4.1)
Less
Liabilities
Trade and other payables
Security deposits
Interest-bearing borrowings5
Deferred tax liabilities
Financial derivatives3
Provision for taxation6


59,563
50,818
747,507
227,734
7,803
6,555


64,527
48,769
977,751
236,426
2,165
2,139


(7.7)
4.2
(23.5)
(3.7)
N.M
N.M.


4,964
-
747,507
-
7,803
7


9,387
-
918,808
-
2,165
-


(47.1)
-
(18.6)
-
N.M.
N.M.
Total liabilities
1,099,980
1,331,777
(17.4)
760,281
930,360
(18.3)
Net assets
1,568,088
1,451,690
8.0
601,392
489,969
22.7
Represented by:
Unitholders' funds
Non-controlling interests
1,548,771
19,317
1,431,811
19,879
8.2
(2.8)
601,392
-
489,969
-
22.7
-
 
1,568,088
1,451,690
8.0
601,392
489,969
22.7

Footnotes:

  1. The decrease in investment properties as at 31 December 2017 was mainly due to the disposal of equity interest in Anzhen SPV.

  2. The increase in trade and other receivables as at 31 December 2017 was mainly due to the deposit paid for the joint acquisition of Rock Square pursuant to a call option agreement.

  3. The financial derivative assets and financial derivative liabilities mainly relate to the fair value of the nondeliverable forwards (“NDF”) and IRS. The NDF are designated as hedges of the Group’s net investment in China and the IRS are designated to hedge the variable rate borrowings.

  4. The increase in cash and cash equivalents was mainly due to higher operating profit from the malls during the year.

  5. The interest-bearing borrowings comprise unsecured term loans of $750.0 million (net of transaction costs of $2.5 million) drawn down by the Trust to partially finance the acquisition of the properties in CRCT and to utilise as working capital.

  6. The increase in provision of taxation was mainly due to higher taxable profits recorded by the Group for the year ended 31 December 2017.