CapitaLand China Trust reports 2H21 net property income climbed 86 percent

The Ascendas Xinsu portfolio, one of CapitaLand China Trust's business park assets. Credit: CapitaLand InvestmentThe Ascendas Xinsu portfolio, one of CapitaLand China Trust's business park assets. Credit: CapitaLand Investment

CapitaLand China Trust (CLCT) reported Monday its second half net property income jumped 86.1 percent on-year to S$130.09 million on contributions from new acquisitions. The results came in below Daiwa’s forecasts.

Gross revenue for the six months ended 31 December increased 84.5 percent on-year to S$201.08 million, the China-focused REIT said in a filing to SGX. 

The distribution per unit (DPU) came in at 4.50 Singapore cents for the second half, up 35.1 percent from 3.33 Singapore cents in the year-ago period, the trust said.

Daiwa had forecast net property income of S$154.9 million on revenue of S$218.1 million, with DPU of 4.533 Singapore cents.

The results included contributions from the acquisitions of logistics assets Kunshan Bacheng Logistics Park, Wuhan Yangluo Logistics Park, Chengdu Shuangliu Logistics Park and Shanghai Fengxian Logistics Park, from 10 November, the filing said. 

In addition, during the year, the trust acquired a business park portfolio, posted a full-year contribution from CapitaMall Nuohemule and purchased the remaining 49 percent interest in Rock Square, the filing said. Rental relief for tenants was also lower on-year, the trust said.

For the full year, CLCT reported net property income of S$250.43 million, up 85.2 percent on-year, on gross revenue of S$377.97 million, up 79.5 percent on-year. The full-year DPU came in at 8.73 Singapore cents, up 37.5 percent from 6.35 Singapore cents in 2020, the trust said. 

Outlook

In the outlook, Soh Kim Soon, chairman of the REIT’s manager, noted that China’s economic growth has exceeded analysts’ expectations in 2021.

“With the Chinese government rolling out fiscal and monetary policies to support the country’s economic growth, we remain confident of China’s long-term prospects,” Soh said in the statement. 

“In the last two years, we have been adding new economy assets and reconstituting CLCT’s portfolio in line with China’s focus on domestic consumption and innovation-driven growth, enhancing the overall quality of its portfolio. The transformed CLCT is now better positioned to capture opportunities in China’s future economy across multiple
sectors and through market cycles,” Soh said.