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1. Enhancing Organic Growth through
Proactive Asset Management
Most of our leases provide for an annual step-up in the
base rent and for rent to be payable on the basis of the
higher of either base rent or a percentage of tenants’ gross
sales turnover, thereby providing stability and potential
upside in rental income.
Apart from organic growth through rental receipts, we work
closely with the mall managers to identify improvements
to the malls’ retail offerings and tenant mix, and carry out
marketing and promotional initiatives to drive up shopper
traffc and non-rental income.
2. Creating New Value through Innovative
Asset Enhancement Strategies
We also actively explore innovative asset enhancement
initiatives to improve the returns of our malls. These
include the reconfguration of the retail units or foor plates
to achieve better effciency and higher rental potential,
retro-ftting and refurbishing the malls to maintain their
appeal to tenants and shoppers.
3. CapitalisingonYield-Accretive Acquisitions
Growth Model
We are always identifying and evaluating yield-accretive
acquisition opportunities from our secured and proprietary
pipeline, and other third-party vendors.
CRCT is provided with long-term growth potential from its
rights of frst refusal to purchase assets held by CapitaMalls
Asia-sponsored private funds, CapitaMalls China Income
Fund, CapitaMalls China Development Fund II, CapitaMalls
China Development Fund III, CapitaMalls China Incubator
Fund, as well as CapitaMalls Asia, one of the largest listed
shopping mall developers, owners and managers in Asia.
In evaluating acquisition opportunities, we will focus
on properties which can maintain or enhance CRCT’s
distribution yield; the properties’ potential asset enhancement
opportunities; properties with potential to demonstrate
strong growth in occupancy rates, sustainable rental
yields, quality tenant and lease profle.
AS THE MANAGER, WE SEEK TO DRIVE CONTINUED GROWTH OF CRCT THROUGH
THE FOLLOWING THREE-PRONGED STRATEGY:
CapitaRETAIL china trust |
Report to UNITHOLDERS 2012
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