Page 11 - ar2013

Management
Reports
9
Dear Unitholders,
On behalf of the Board of Directors
of the Manager, we are pleased to
present the Annual Report for the
financial year ended 31 December
2013 (FY 2013).
Through disciplined execution of our
three-pronged growth strategy, we
have delivered yet another year of
strong performance.
DELIVERING SUSTAINABLE
AND RESILIENT GROWTH
For FY 2013, gross revenue grew
3.5% year-on-year to RMB795.0
million and net property income
increased 2.0% year-on-year
to RMB511.7 million. Excluding
CapitaMall Minzhongleyuan which
was closed in July 2013 for asset
enhancement works, our gross
revenue grew 7.6% and net property
income 7.0% year-on-year.
During the year, total distributable
income increased 4.9% year-on-year
to S$70.1 million. We made a
distribution of 4.69 cents per unit
to our Unitholders in September
2013 and will be distributing
4.33 cents per unit in March 2014.
Total distribution per unit is 9.02
cents for FY 2013. Based on CRCT’s
closing price of S$1.33 on 31
December 2013, our distribution
yield was 6.8%.
By keeping abreast of the
ever-changing consumer needs
and taking a proactive approach
to adjusting our tenant mix, our
malls continue to attract strong
following from both shoppers and
retailers. In the year under review,
we achieved an outstanding
performance with tenants’ sales
and shopper traffic growth of 9.2%1
and 5.4%1 respectively on a year-
on-year basis. A total of 5642 leases
were renewed during the year at an
average increase of 13.8%2 over the
preceding rentals. Our committed
occupancy was maintained at a
high rate of 98.2%. Valuation of our
malls as at December 2013 was
RMB10.1 billion, 7.3%2 higher than the
previous year.
BUILDING FOR THE FUTURE
We constantly look for creative ways
to unlock the value of our malls and
to deliver growth. An example of
such efforts was the transformation
of CapitaMall Saihan from a
master-leased to multi-tenanted
mall. We recovered space from our
master lessee and reconfigured
it before re-leasing to the
specialty tenants. The extensive
asset enhancement works were
completed in late 2009, turning the
mall into a leading shopping, dining
and entertainment destination
in Inner Mongolia. Since the
completion of the renovation, the
mall has increased its gross revenue
by 111.3%, from RMB23.4 million in
2010 to RMB49.5 million in 2013.
Net property income has also grown
238.4%, from RMB7.6 million in 2010
to RMB25.7 million in 2013.
With the same objectives in
mind, we embarked upon a major
initiative to transform CapitaMall
Minzhongleyuan in Wuhan into
a unique shopping destination.
CapitaMall Minzhongleyuan is a
charming heritage building that
was completed around 1920, with
an extension block constructed
in 1997. It has a long history of
being a cultural and performance
centre before it was converted to
a shopping mall. The major uplift
will boost the overall appeal as we
upgrade the facilities, improve the
layout and refresh the tenant mix.
The asset enhancement works
have commenced in July 2013 and
the mall is slated to reopen in the
Excluding CapitaMall
Minzhongleyuan which
was closed in July 2013
for asset enhancement
works, our gross
revenue grew 7.6%.
Gross Revenue
RMB795.0m