Page 9 - Report_to_Unitholders_2012

Dear Unitholders,
On behalf of the Board of Directors of the Manager, we
are pleased to present the Report to Unitholders for
the fnancial year ended 31 December 2012 (FY 2012).
Another Year of Strong Results
We delivered a strong set of results for 2012 despite
a year of global economic uncertainty. With proactive
mall management, portfolio gross revenue in FY 2012
grew 12.8% year-on-year to RMB768.0 million. Net
property income reached RMB501.9 million, an increase
of 13.3% over the same period last year. Distributable
income increased 16.8% year-on-year to S$66.8 million.
Unitholders will receive distribution per unit (DPU) of
9.54 cents for FY 2012, an increase of close to 10%
compared to last year.
Our malls continued to be popular among our tenants
and shoppers. Shopper traffc and tenants’ sales for
the year increased 23.5% and 13.4% year-on-year
respectively1. We renewed a total of 687 leases in
FY 2012, at an average rental increase of 17.5%
over preceding rental. As a portfolio, our occupancy
rate maintained at a high 97.2% as at 31 December
2012. The valuation of our malls as at December 2012
increased 7.6% to RMB7.6 billion from RMB7.1 billion
as at December 2011.
CRCT’s unit price appreciated 43.0% to S$1.645
on 31 December 2012 from S$1.150 a year ago,
outperforming the Straits Times Index, the FTSE
Straits Times Real Estate Investment Trust Index and
the Shanghai Exchange Composite Index. CRCT’s
market capitalisation grew 55.5% to approximately
S$1.23 billion as at 31 December 2012. Including the
distribution payout of 9.54 cents for the year, CRCT
generated a high total return of 51.3% for Unitholders
in FY 2012.
Strengthening Fundamentals
In FY 2012, we focused on strengthening the fundamentals
of our malls with a view to creating sustainable growth
for our portfolio. We enhanced organic growth through
proactively identifying areas of improvement that can
be made to our malls.
At CapitaMall Xizhimen, the largest mall in our portfolio,
we thoroughly assessed its potential and put in place
a comprehensive asset plan to maximise its value. We
upgraded its tenant mix, introducing new international
fast fashion retailers like UNIQLO on level four of the
mall. This not only enhanced the tenant mix but also
improved footfall at the higher levels of the mall.
With the opening of CapitaMall Xizhimen’s basement
connection which leads directly to one train and three
subway stations, we customised a set of retail offerings
that would most appeal to commuters passing through
every day. They include coffee chains like Starbucks
and Costa Coffee, as well as fast food operators like
KFC and Yoshinoya.
The success of our proactive asset management
initiatives was reflected in CapitaMall Xizhimen’s
strong results in FY 2012. Its gross revenue and net
property income grew 14.1% and 16.8% year-on-year
respectively. Average daily shopper traffc grew 50.0%
compared to a year ago. In March 2012, the mall was
conferred the “China’s Most Progressive Mall” award
by the China Commercial Real Estate Association,
in recognition of its excellent market positioning and
healthy occupancy rate.
Net Property Income of
in FY 2012, an increase of
13.3% year-on-year
RMB501.9m
Record
Distribution
Per Unit of
9.54cents
Distributable Income of
in FY 2012, an increase of
16.8% year-on-year
S$66.8m
CapitaRETAIL china trust | Report to UNITHOLDERS 2012 7