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Summary of CRCT Results
 
3Q 2018
3Q 2017
YTD 2018
YTD 20171
 
Actual
S$'000
Actual
S$'000
Change
%
Actual
S$'000
Actual
S$'000
Change
%
Gross Revenue2
55,352
55,989
(1.1)
166,997
175,083
(4.6)
Net Property Income2
36,732
35,951
2.2
111,545
116,225
(4.0)
Distributable income
contribution from joint venture3
1,847
-
100.0
5,077
-
100.0
Distributable amount to Unitholders
23,647
21,409
10.5
76,007
69,101
10.0
Distribution Per Unit ("DPU") (cents)
For the period4
2.41
2.37
1.7
7.80
7.73
0.9
Annualised
9.56
9.40
1.7
10.43
10.33
1.0
For information Only
DPU (cents) (adjusted with the enlarged Units in issue)5
2.41
2.22
8.6
7.80
7.22
8.0
 
 
3Q 2018
3Q 2017
YTD 2018
YTD 20171
 
Actual
RMB'000
Actual
RMB'000
Change
%
Actual
RMB'000
Actual
RMB'000
Change
%
Gross Revenue
274,013
274,959
(0.3)
811,256
857,354
(5.4)
Net Property Income
181,856
176,570
3.0
541,878
569,126
(4.8)

Footnotes:

  1. The financial results exclude CapitaMall Anzhen which was divested with effect from 1 July 2017.
  2. Average exchange rate for SGD/RMB.
3Q 2018
3Q 2017
Change %
YTD 2018
YTD 2017
Change %
4.950
4.911
(0.8)
4.858
4.897
0.8

  1. This relates to 51% interest in Rock Square for 3Q 2018 and for period from 1 February 2018 to 30 September 2018.
  2. 3Q 2018 DPU was based on 980.5 million Units. YTD 2018 DPU was based on 969.9 million Units from 1 January 2018 to 30 June 2018 and 980.5 million Units from 1 July 2018 to 30 September 2018. 3Q 2017 DPU was based on 901.8 million Units. YTD 2017 DPU was based on 888.7 million Units from 1 January 2017 to 30 June 2017 and 901.8 million Units from 1 July 2017 to 30 September 2017
  3. Adjusted DPU for 3Q 2017 of 2.22 cents was based on 966.2 million Units and YTD 2017 of 7.22 cents was based on 953.1 million Units from 1 January 2017 to 30 June 2017 and 966.2 million Units from 1 July 2017 to 30 September 2017.
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 September 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 (3Q 2018 vs 3Q 2017)
 
Group
 
3Q 2018
S$'000
3Q 2017
S$'000
%
Change
 
Gross rental income
Other income2
51,258
4,094
51,395
4,594
(0.3)
(10.9)
 
Gross revenue
Land rental
Property related tax
Business tax
Property management fees3
Other property operating expenses4
55,352
(1,411)
(5,056)
(305)
(3,574)
(8,274)
55,989
(1,479)
(5,776)
(294)
(3,409)
(9,080)
(1.1)
(4.6)
(12.5)
3.7
4.8
(8.9)
 
Total property operating expenses
(18,620)
(20,038)
(7.1)
 
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 (expenses)/income5
Finance income6
Foreign exchange loss – realised7
Finance costs
36,732
(1,909)
(1,603)
(117)
(112)
(55)
(318)
1,755
(235)
(7,166)
35,951
(1,751)
(1,445)
(108)
(107)
(56)
279
597
(32)
(5,772)
2.2
9.0
10.9
8.3
4.7
(1.8)
N.M.
N.M.
N.M.
24.2
 
Net income before share of results of joint venture
Share of results (net of tax) of joint venture8
26,972
1,414
27,556
-
(2.1)
100.0
 
Net Income
Gain on disposal of subsidiary9
Change in fair value of financial derivatives
Foreign exchange (loss)/gain – unrealised
28,386
-
166
(1,326)
27,556
52,227
-
1,273
3.0
(100.0)
100.0
N.M.
 
Total return for the period before taxation
Taxation10
27,226
(8,408)
81,056
(24,879)
(66.4)
(66.2)
 
Total return for the period after taxation
18,818
56,177
(66.5)
 
Attributable to:
Unitholders
Non-controlling interest

19,555
(737)

56,162
15

(65.2)
N.M.
 
Total return for the period after taxation
18,818
56,177
(66.5)
 

Statement of total return for the Group (YTD 2018 vs YTD 2017)
 
Group
 
YTD 2018
S$'000
YTD 20171
S$'000
%
Change
 
Gross rental income
Other income2
156,414
10,583
162,286
12,797
(3.6)
(17.3)
 
Gross revenue
Land rental
Property related tax
Business tax
Property management fees3
Other property operating expenses4
166,997
(4,363)
(15,466)
(922)
(10,785)
(23,916)
175,083
(4,469)
(18,198)
(953)
(10,572)
(24,666)
(4.6)
(2.4)
(15.0)
(3.3)
2.0
(3.0)
 
Total property operating expenses
(55,452)
(58,858)
(5.8)
 
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
111,545
(5,754)
(4,828)
(348)
(349)
(155)
(1,062)
4,516
(186)
(19,547)
116,225
(5,304)
(4,622)
(319)
(307)
(152)
185
1,112
(261)
(17,670)
(4.0)
8.5
4.5
9.1
13.7
2.0
N.M.
N.M.
(28.7)
10.6
 
Net income before share of results of joint venture

Share of results (net of tax) of joint venture8
83,832

5,565
88,887

-
(5.7)

100.0
 
Net Income
Gain on disposal of subsidiary9
Change in fair value of investment properties
Change in fair value of financial derivatives
Foreign exchange (loss)/gain – unrealised
89,397
-
23,642
166
(649)
88,887
52,227
13,049
-
1,575
0.6
(100.0)
81.2
100.0
N.M.
 
Total return for the period before taxation
Taxation10
112,556
(34,026)
155,738
(48,322)
(27.7)
(29.6)
 
Total return for the period after taxation
78,530
107,416
(26.9)
 
Attributable to:
Unitholders
Non-controlling interest

79,704
(1,174)

108,586
(1,170)

(26.6)
0.3
 
Total return for the period after taxation
78,530
107,416
(26.9)
 

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
 
3Q 2018
S$'000
3Q 2017
S$'000
%
Change
Depreciation and amortisation
Write back/(Impairment losses) on trade receivables, net
(312)
54
(396)
3
(21.2)
N.M.
 
Group
 
YTD 2018
S$'000
YTD 20171
S$'000
%
Change
Depreciation and amortisation
Impairment losses on trade receivables, net
Plant and equipment written off
(986)
46
-
(1,345)
(54)
(2)
(26.7)
N.M.
100.0
  1. Includes reversal of over provision of other trust operating expenses in 3Q 2017 and YTD 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 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 3Q 2018 and for period from 1 February 2018 to 30 September 2018. Details are as follows:

 
For information only
 
3Q 2018
S$'000
3Q 2017
S$'000
Gross revenue
Property operating expenses
4,735
(1,677)
-
-
Net property income
Finance income
Finance costs
Other operating expenses
3,058
41
(1,182)
(503)
-
-
-
-
Share of results (net of tax) of joint venture
1,414
-

 
For information only
 
YTD 2018
S$'000
YTD 2017
S$'000
Gross revenue
Property operating expenses
12,266
(3,910)
-
-
Net property income
Finance income
Finance costs
Other operating expenses
Change in value of investment properties
8,356
48
(3,132)
(2,967)
3,260
-
-
-
-
-
Share of results (net of tax) of joint venture
5,565
-
  1. This relates to gain arising from the disposal of CapitaMall Anzhen in July 2017.
  2. 3Q 2017 and YTD 2017 include withholding tax payment of $14.9 million upon disposal of CapitaMall Anzhen. Includes under provision of taxation from prior years of $0.4 million in 3Q 2017 and $1.3 million in YTD 2017.

N.M. - not meaningful


Distribution statement for the Group (3Q 2018 vs 3Q 2017)
 
Group
 
3Q 2018
S$'000
3Q 2017
S$'000
%
Change
Total return for the period attributable to Unitholders before distribution
Distribution adjustments (Note A)
19,555

3,342
56,162

(34,753)
(65.2)

N.M.
Income available for distribution to Unitholders
Capital distribution2
22,897
750
21,409
-
7.0
100.0
Distributable amount to Unitholders
23,647
21,409
10.5
Comprises :
- from operations
- from Unitholders' contribution

(4,608)
27,505

(11,208)
32,617

(58.9)
(15.7)

- from capital distribution2
22,897
750
21,409
-
7.0
100.0
Distributable amount to Unitholders
23,647
21,409
10.5
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 properties3
- Deferred taxation3
- Transfer to general reserve
- Unrealised foreign exchange gain3
- Other adjustments3
- Adjustments for share of results (net of tax) of joint venture
-
1,603


(166)
1,804
(1,552)
914
306
433
(37,314)
1,445


-
3,225
(1,454)
(1,041)
386
-
100.0
10.9


100.0
(44.1)
6.7
N.M.
(20.7)
100.0
Net effect of distribution adjustments
3,342
(34,753)
N.M.

Distribution statement for the Group (YTD 2018 vs YTD 2017)
 
Group
 
YTD 2018
S$'000
YTD 2017 1
S$'000
%
Change
Total return for the period attributable to Unitholders before distribution
Distribution adjustments (Note A)
79,704

(8,947)
108,586

(39,485)
(26.6)

(77.3)
Income available for distribution to Unitholders
Capital distribution2
70,757
5,250
69,101
-
2.4
100.0
Distributable amount to Unitholders
76,007
69,101
10.0
Comprises :
- from operations
- from Unitholders' contribution

(15,857)
86,614

(16,011)
85,112

(1.0)
1.8

- from capital distribution2
70,757
5,250
69,101
-
2.4
100.0
Distributable amount to Unitholders
76,007
69,101
10.0
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 properties3
- Deferred taxation3
- Transfer to general reserve
- Unrealised foreign exchange loss/(gain)3
- Other adjustments3
- Adjustments for share of results (net of tax) of joint venture

-
4,828
(23,644)
(166)
13,894
(4,746)
409
966
(488)

(37,314)
4,669
(14,094)
-
11,885
(4,633)
(1,308)
1,310
-

100.0
3.4
67.8
100.0
16.9
2.4
N.M.
(26.3)
100.0
Net effect of distribution adjustments
(8,947)
(39,485)
(77.3)

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 Sep 2018 vs 31 Dec 2017
 
Group
Trust
 
30 Sep 2018
S$'000
31 Dec 2017
S$'000
%
Change
30 Sep 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

2,421,418
2,425
-
260,330
112,026
3,219
142,385

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

(0.8)
(18.1)
-
100.0
N.M
N.M.
(23.7)

-
-
1,590,159
-
234
3,219
208

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

-
-
19.9
-
(98.4)
N.M.
(97.8)
Total assets
2,941,803
2,668,068
10.3
1,593,820
1,361,673
17.0
Less
Liabilities
Trade and other payables
Security deposits
Interest-bearing borrowings7
Deferred tax liabilities
Financial derivatives5
Provision for taxation


53,036
52,888
1,038,546
237,056
122
2,679


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


(11.0)
4.1
38.9
4.1
(98.4)
(59.1)


6,336
-
1,038,546
-
122
7


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


27.6
-
38.9
-
(98.4)
-
Total liabilities
1,384,327
1,099,980
25.9
1,045,011
760,281
37.5
Net assets
1,557,476
1,568,088
(0.7)
548,809
601,392
(8.7)
Represented by:
Unitholders' funds
Non-controlling interests
1,539,002
18,474
1,548,771
19,317
(0.6)
(4.4)
548,809
-
601,392
-
(8.7)
-
 
1,557,476
1,568,088
(0.7)
548,809
601,392
(8.7)

Footnotes:

  1. The decrease in investment properties as at 30 September 2018 was mainly due to an increase of fair value in investment properties but offset by weaker RMB against SGD.

  2. The increase in interests in subsidiaries as at 30 September 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 September 2018 includes loan to joint venture.

  5. The financial derivative assets and financial derivative liabilities mainly relate to the fair value of the non-deliverable forwards (“NDF”) and interest rate swaps (“IRS”) as at 30 September 2018. The NDF are designated to hedge RMB cashflows and the IRS are designated to hedge the variable rate borrowings.

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

  7. The interest-bearing borrowings comprise unsecured loans of $792.1 million, a bridge loan of $120.0 million and fixed notes of S$130.0 million issued through its S$1 billion Multicurrency Debt Issuance Programme (net of transaction costs of $3.5 million) drawn down by the Trust to partially finance the acquisition of the properties in CRCT and to utilise as working capital.