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Summary of CRCT Results
 
2Q 20181
2Q 2017
1H 20181
1H 2017
 
Actual
S$'000
Actual
S$'000
Change
%
Actual
S$'000
Actual
S$'000
Change
%
Gross Revenue2
56,278
58,993
(4.6)
111,645
119,094
(6.3)
Net Property Income2
37,629
39,971
(5.9)
74,813
80,274
(6.8)
Distributable income
contribution from joint venture3
2,015
-
100.0
3,230
-
100.0
Distributable amount to Unitholders
25,661
23,337
10.0
52,360
47,692
9.8
Distribution Per Unit ("DPU") (cents)
For the period4
2.64
2.62
0.8
5.39
5.36
0.6
Annualised
10.59
10.51
0.8
10.87
10.81
0.6
For information Only
DPU (cents) (adjusted with the enlarged Units in issue)5
2.64
2.44
8.2
5.39
5.00
7.8
 
 
2Q 20181
2Q 2017
1H 20181
1H 2017
 
Actual
RMB'000
Actual
RMB'000
Change
%
Actual
RMB'000
Actual
RMB'000
Change
%
Gross Revenue
269,795
291,530
(7.5)
537,243
582,395
(7.8)
Net Property Income
180,405
197,660
(8.7)
360,022
392,556
(8.3)

Footnotes:

  1. The financial results exclude CapitaMall Anzhen which was divested with effect from 1 July 2017.
  2. Average exchange rate for RMB/SGD.
2Q 2018
2Q 2017
Change %
1H 2018
1H 2017
Change %
0.209
0.202
3.5
0.208
0.204
2.0

  1. This relates to 51% interest in Rock Square for 2Q 2018 and for period from 1 February 2018 to 30 June 2018.
  2. 2018 DPU was based on 969.9 million Units and 2017 DPU was based on 888.7 million Units
  3. Adjusted DPU for 2Q 2017 of 2.44 cents and 1H 2017 of 5.00 cents were based on 953.1 million Units including the private placement Units issued in December 2017.
DISTRIBUTION & BOOK CLOSURE DATE
Distribution For 1 January 2018 to 30 June 2018
Distribution type Tax exempt/Capital Distribution
Distribution rate 5.39 cents per Unit
Book closure date 6 August 2018
Payment date 20 September 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 30 June 2018, CRCT owns and invests in a portfolio of 11 shopping malls located in eight 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; 51% interest in CapitaMall Wuhu in Wuhu and 51% interest in Rock Square (“RS JV”) in Guangzhou.

Statement of total return for the Group (2Q 2018 vs 2Q 2017)
 
Group
 
2Q 20181
S$'000
2Q 2017
S$'000
%
Change
 
Gross rental income
Other income2
52,322
3,956
54,418
4,575
(3.9)
(13.5)
 
Gross revenue
Land rental
Property related tax
Business tax
Property management fees3
Other property operating expenses4
56,278
(1,476)
(5,191)
(305)
(3,607)
(8,070)
58,993
(1,480)
(6,207)
(315)
(3,509)
(7,511)
(4.6)
(0.3)
(16.4)
(3.2)
2.8
7.4
 
Total property operating expenses
(18,649)
(19,022)
(2.0)
 
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)/income5
Finance income6
Foreign exchange loss – realised7
Finance costs
37,629
(1,945)
(1,648)
(118)
(115)
(50)
(418)
1,712
(22)
(6,610)
39,971
(1,682)
(1,605)
(105)
(90)
(47)
291
468
(180)
(5,885)
(5.9)
15.6
2.7
12.4
27.8
6.4
N.M.
N.M.
(87.8)
12.3
 
Net income before share of results of joint venture
Share of results (net of tax) of joint venture8
28,415
3,664
31,136
-
(8.7)
100.0
 
Net Income
Change in fair value of investment properties
Foreign exchange (loss)/gain – unrealised
32,079
23,642
(70)
31,136
13,049
172
3.0
81.2
N.M.
 
Total return for the period before taxation
Taxation
55,651
(15,459)
44,357
(13,993)
25.5
10.5
 
Total return for the period after taxation
40,192
30,364
32.4
 
Attributable to:
Unitholders
Non-controlling interest

40,627
(435)

31,344
(980)

29.6
(55.6)
 
Total return for the period after taxation
40,192
30,364
32.4
 

Statement of total return for the Group (1H 2018 vs 1H 2017)
 
Group
 
1H 20181
S$'000
1H 2017
S$'000
%
Change
 
Gross rental income
Other income2
105,156
6,489
110,891
8,203
(5.2)
(20.9)
 
Gross revenue
Land rental
Property related tax
Business tax
Property management fees3
Other property operating expenses4
111,645
(2,952)
(10,410)
(617)
(7,211)
(15,642)
119,094
(2,990)
(12,422)
(659)
(7,163)
(15,586)
(6.3)
(1.3)
(16.2)
(6.4)
0.7
0.4
 
Total property operating expenses
(36,832)
(38,820)
(5.1)
 
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 expenses5
Finance income6
Foreign exchange gain/(loss) – realised7
Finance costs
74,813
(3,845)
(3,225)
(231)
(237)
(100)
(744)
2,761
49
(12,381)
80,274
(3,553)
(3,177)
(211)
(200)
(96)
(94)
515
(229)
(11,898)
(6.8)
8.2
1.5
9.5
18.5
4.2
N.M.
N.M.
N.M.
4.1
 
Net income before share of results of joint venture

Share of results (net of tax) of joint venture8
56,860

4,151
61,331

-
(7.3)

100.0
 
Net Income
Change in fair value of investment properties
Foreign exchange gain – unrealised
61,011
23,642
677
61,331
13,049
302
(0.5)
81.2
N.M.
 
Total return for the period before taxation
Taxation
85,330
(25,618)
74,682
(23,443)
14.3
9.3
 
Total return for the period after taxation
59,712
51,239
16.5
 
Attributable to:
Unitholders
Non-controlling interest

60,149
(437)

52,424
(1,185)

14.7
(63.1)
 
Total return for the period after taxation
59,712
51,239
16.5
 

Footnotes:

  1. Excludes contribution from CapitaMall Anzhen which was divested with effect from 1 July 2017.
  2. Other income comprises mainly income earned from atrium space, carpark, trolley carts and advertisement panels.
  3. Includes reimbursement of costs to the property manager.
  4. Includes items in the table below as part of the other property operating expenses.


 
Group
 
2Q 20181
S$'000
2Q 2017
S$'000
%
Change
Depreciation and amortisation
Write back/(Impairment losses) on trade receivables
(329)
4
(459)
(57)
(28.3)
N.M.
 
Group
 
1H 20181
S$'000
1H 2017
S$'000
%
Change
Depreciation and amortisation
Impairment losses on trade receivables
Plant and equipment written off
(674)
(8)
-
(949)
(57)
(2)
(29.0)
(86.0)
N.M.
  1. Includes reversal of over provision of other trust operating expenses in 2Q 2017 and 1H 2017
  2. Finance income relates mainly to interest from bank deposits placed with financial institutions and loan to joint venture.
  3. Realised foreign exchange relates to the gain/(loss) on the repayment of the USD denominated shareholder’s loans interest.
  4. This relates to the share of results from the 51% interest in RS JV for 2Q 2018 and for period from 1 February 2018 to 30 June 2018. Details are as follows:

 
For information only
 
2Q 2018
S$'000
2Q 2017
S$'000
Gross revenue
Property operating expenses
4,597
(1,343)
-
-
Net property income
Finance income
Finance costs
Other operating expenses
Change in value of investment properties
3,254
7
(1,171)
(1,686)
3,260
-
-
-
-
-
Share of results (net of tax) of joint venture
3,664
-

 
For information only
 
1H 2018
S$'000
1H 2017
S$'000
Gross revenue
Property operating expenses
7,531
(2,233)
-
-
Net property income
Finance income
Finance costs
Other operating expenses
Change in value of investment properties
5,298
7
(1,950)
(2,464)
3,260
-
-
-
-
-
Share of results (net of tax) of joint venture
4,151
-

N.M. - not meaningful


Distribution statement for the Group (2Q 2018 vs 2Q 2017)
 
Group
 
2Q 20181
S$'000
2Q 2017
S$'000
%
Change
Total return for the period attributable to Unitholders before distribution
Distribution adjustments (Note A)
40,627

(16,466)
31,344

(8,007)
29.6

N.M.
Income available for distribution to Unitholders
Capital distribution2
24,161
1,500
23,337
-
3.5
100.0
Distributable amount to Unitholders
25,661
23,337
10.0
Comprises :
- from operations
- from Unitholders' contribution

(4,082)
28,243

(2,120)
25,457

92.5
10.9

- from capital distribution2
24,161
1,500
23,337
-
3.5
100.0
Distributable amount to Unitholders
25,661
23,337
10.0
Note A
Distribution adjustments
- Manager's management fees (performance component payable in Units)
- Change in fair value of investment properties3
- Deferred taxation3
- Transfer to general reserve
- Unrealised foreign exchange gain3
- Other adjustments3
- Adjustments for share of results (net of tax) of joint venture

1,648

(23,644)
8,503
(1,633)
(13)
322
(1,649)

1,652

(14,094)
5,703
(1,566)
(149)
447
-

(0.2)

67.8
49.1
4.3
(91.3)
(28.0)
100.0
Net effect of distribution adjustments
(16,466)
(8,007)
N.M.

Distribution statement for the Group (1H 2018 vs 1H 2017)
 
Group
 
1H 20181
S$'000
1H 2017
S$'000
%
Change
Total return for the period attributable to Unitholders before distribution
Distribution adjustments (Note A)
60,149

(12,289)
52,424

(4,732)
14.7

N.M.
Income available for distribution to Unitholders
Capital distribution2
47,860
4,500
47,692
-
0.4
100.0
Distributable amount to Unitholders
52,360
47,692
9.8
Comprises :
- from operations
- from Unitholders' contribution

(11,249)
59,109

(4,803)
52,495

N.M.
12.6

- from capital distribution2
47,860
4,500
47,692
-
0.4
100.0
Distributable amount to Unitholders
52,360
47,692
9.8
Note A
Distribution adjustments
- Manager's management fees (performance component payable in Units)
- Change in fair value of investment properties3
- Deferred taxation3
- Transfer to general reserve
- Unrealised foreign exchange gain3
- Other adjustments3
- Adjustments for share of results (net of tax) of joint venture


3,225
(23,644)
12,090
(3,194)
(505)
660
(921)


3,224
(14,094)
8,660
(3,179)
(267)
924
-


-
67.8
39.6
0.5
89.1
(28.6)
100.0
Net effect of distribution adjustments
(12,289)
(4,732)
N.M.

N.M. - not meaningful

Footnotes:

  1. Excludes contribution from CapitaMall Anzhen which was divested with effect from 1 July 2017.
  2. This relates to the partial distribution of gains from the disposal of CapitaMall Anzhen.
  3. Excludes non-controlling interest’s share.

Statement of financial position as at 30 Jun 2018 vs 31 Dec 2017
 
Group
Trust
 
30 Jun 2018
S$'000
31 Dec 2017
S$'000
%
Change
30 Jun 2018
S$'000
31 Dec 2017
S$'000
%
Change
Assets
Investment properties1
Plant and equipment
Interests in subsidiaries2
Interest in joint venture3
Trade and other receivables4
Financial derivatives5
Cash and cash equivalents6

2,524,367
2,637
-
268,392
116,176
3,336
112,708

2,441,024
2,962
-
-
37,131
436
186,515

3.4
(11.0)
-
100.0
N.M
N.M.
(39.6)

-
-
1,579,239
-
1,029
3,336
1,167

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

-
-
19.1
-
(96.0)
N.M
(87.9)
Total assets
3,027,616
2,668,068
13.5
1,584,771
1,361,673
16.4
Less
Liabilities
Trade and other payables
Security deposits
Interest-bearing borrowings7
Deferred tax liabilities
Financial derivatives5
Provision for taxation


46,846
54,045
998,890
244,980
162
4,285


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


(21.4)
6.4
33.6
7.6
(97.9)
(34.6)


6,157
-
998,890
-
162
7


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


24.0
-
33.6
-
(97.9)
-
Total liabilities
1,349,208
1,099,980
22.7
1,005,216
760,281
32.2
Net assets
1,678,408
1,568,088
7.0
579,555
601,392
(3.6)
Represented by:
Unitholders' funds
Non-controlling interests
1,658,410
19,998
1,548,771
19,317
7.1
3.5
579,555
-
601,392
-
(3.6)
-
 
1,678,408
1,568,088
7.0
579,555
601,392
(3.6)

Footnotes:

  1. The increase in investment properties as at 30 June 2018 was mainly due to increase of fair value in the investment properties and strengthening of RMB against SGD.

  2. The increase in interests in subsidiaries as at 30 June 2018 was mainly due to shareholder loan extended to the subsidiary for the acquisition of RS JV.

  3. This relates to CRCT’s 51% interest in RS JV.

  4. Trade and other receivables as at 30 June 2018 includes loan to joint venture.

  5. 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 as hedge of the variable rate borrowings.

  6. The decrease was mainly due to payment of consideration of CRCT’s investment in 51% interest in RS JV.

  7. The interest-bearing borrowings comprise unsecured loans of $751.8 million and a bridge loan of $250.0 million (net of transaction costs of $2.9 million) drawn down by the Trust to partially finance the acquisition of the properties in CRCT and to utilise as working capital.