Yahoo Finance CapitaLand China Trust reports 2HFY2022 DPU of 3.40 cents, 24.4% lower y-o-y
DPU for the FY2022 fell by 14.1% y-o-y to 7.50 cents from FY2021’s 8.73 cents.
The manager of CapitaLand China Trust has reported a distribution per unit (DPU) of 3.40 cents for the 2HFY2022 ended Dec 31, 2022, 24.4% lower than the DPU of 4.50 cents in the same period the year before. The lower 2HFY2022 DPU was due to the drop in gross revenue and net property income (NPI) for the period.
DPU for the FY2022 fell by 14.1% y-o-y to 7.50 cents from FY2021’s 8.73 cents over an enlarged unit base and lower distributable income.
There were a total of 1.67 billion units as at Dec 31, 2022, compared to the 1.66 billion units as at Dec 31, 2021.
In renminbi (RMB) terms, 2HFY2022 gross revenue fell by 5.6% y-o-y to RMB911.3 million due to the lower revenue from CLCT’s retail portfolio as malls were mandated to close for days during the period. The lower revenue was also affected by higher rental relief provided. In addition, there was the absence of a one-off insurance claim received for CapitaMall Grand Canyon in the 2HFY2021.
In Singapore dollar (SGD) terms, gross revenue fell by 8.6% y-o-y to $183.9 million due to the stronger SGD against the RMB.
NPI for the period fell by 8.7% y-o-y to RMB570.1 million on the back of higher property expenses, higher rental reliefs and the downtime from associated asset enhancement initiatives (AEI) for various malls.
In SGD terms, NPI fell by 11.8% y-o-y to $114.7 million due to the stronger SGD.
Finance costs during the period increased by 27.7% y-o-y to $32.7 million. This was mainly from the increase in interest-bearing borrowings drawdown, the consolidation of the RMB-denominated loans from the business and logistics parks, as well as higher interest base rates.
2HFY2022 distributable income fell by 25.4% y-o-y to $53.3 million. The amount includes the $3.6 million from the distributable income that was previously retained in the 1HFY2022.
During the FY2022, gross revenue increased by 1.39% y-o-y to RMB1.86 billion mainly due to the full-year contribution from the acquisitions of the five business parks and four logistics parks. The parks were acquired in the FY2021.
In SGD terms, FY2022 gross revenue increased by 1.38% y-o-y to $383.2 million.
NPI rose by 1.53% y-o-y to RMB1.23 billion as property expenses increased due to the expenses incurred from the acquisition of the parks.
In SGD terms, NPI rose by 1.51% y-o-y to $254.2 million.
Finance costs during the year increased by 25.5% y-o-y to $60.4 million.
Distributable income for the FY2022 fell by 7.3% y-o-y to $125.6 million.
As at Dec 31, 2022, CLCT’s occupancy stood at 95.4% for its retail portfolio, 91.4% for its business park and 96.4% for its logistics park.
Portfolio weighted average lease expiry (WALE) stood at 2.2 years for its retail portfolio, 1.7 years for the business park and 1.1 years for the logistics park.
The REIT achieved positive rental reversion of 2.7% for its retail portfolio and 6.4% for its new economy portfolio.
As at Dec 31, 2022, CLCT’s gearing stood at 39.6%, 0.3 percentage points higher q-o-q. Its interest coverage ratio (ICR) stood at 3.8x, down from 4.4x as at Sept 30, 2022. Undistributed income hedged in SGD stood at 54.5% as at Dec 31, 2022, down from 62.5% as at Sept 30, 2022.
Cash and cash equivalents as at Dec 31, 2022, stood at $231.0 million.
Tan Tze Wooi, CEO of the manager, attributes CLCT’s diversified portfolio as having helped the REIT weather the impact of Covid-19 in FY2022.
“With the worst of China’s Covid-19 situation behind us, we expect CLCT’s retail portfolio to shift to a positive trajectory in 2023, supported by strategically timed AEIs and unit reconfigurations,” he says. “Looking ahead, we will focus on maintaining a strong balance sheet through disciplined capital management and the use of appropriate hedging instruments, while actively looking to unlock value from mature assets to increase our financial capacity. We will also seek out yield-accretive acquisitions to further enhance CLCT’s portfolio quality,” he adds.
“With CLCT’s diversified portfolio and tenant base well-aligned with China’s focus on domestic consumption and innovation-driven growth, we look forward to riding on China’s swift reopening and pro-growth policies to deliver sustainable long-term value for unitholders.”
Soh Kim Soon, chairman of the manager, noted the growth of China’s GDP in 2022 and the expectation of the country’s economy to rebound in 2023.
“As the business environment improves, with most Chinese provinces targeting growth of above 5%, CLCT’s diversified portfolio is well-placed to capitalise on growth opportunities across multiple sectors,” he says.
Unitholders will receive their DPU on March 30.
Units in CLCT closed 2 cents higher or 1.6% up at $1.27
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