Turnover Rent
CRCT’s favourable lease structure helps to provide Unitholders with a stable and growing rental cash
flow. Most of the leases for the anchors, mini-anchors and specialty tenants have an annual step-up
in the base rent. In addition, most of the leases also contain provisions for rent to be payable at the
applicable base rent or at a percentage of sales turnover, whichever is higher. The combination of
direct point-of-sales systems, system link-up with tenants’ point-of-sales and central cashier systems
at our malls allows us to keep track of tenants’ sales. The long-term master leases at CapitaMall
Anzhen, CapitaMall Erqi and CapitaMall Shuangjing contain provisions for upside in rental through
step-ups in the base rent. In addition, the master leases at CapitaMall Anzhen and CapitaMall Erqi
provide further potential upside through a percentage of tenants’ sales turnover if the turnover
exceeds an agreed threshold.
Committed Leases with Turnover Rent
Provisions by Total Rental Income (%)
(As at 31 December 2014)
Committed Leases with Turnover Rent Provisions
85.1%
Committed Leases without Turnover Rent Provisions 14.9%
Committed Leases with Turnover Rent
Provisions by NLA (%)
(As at 31 December 2014)
Committed Leases with Turnover Rent Provisions
72.0%
Committed Leases without Turnover Rent Provisions 28.0%
Trade Sector Analysis
by Total Rental Income (%)
(As at 31 December 2014)
Fashion & Accessories
Food & Beverage
Department Store
Supermarket
Beauty & Healthcare
Shoes & Bags
Houseware & Furnishings
Leisure & Entertainment
Education
Others
28.4
21.8
14.6
9.4
7.7
3.4
2.8
2.6
2.4
6.9
Trade Sector Analysis
by Committed NLA (%)
(As at 31 December 2014)
Fashion & Accessories
Food & Beverage
Department Store
Supermarket
Beauty & Healthcare
Shoes & Bags
Houseware & Furnishings
Leisure & Entertainment
Education
Others
11.9
12.3
29.5
28.0
3.6
1.1
4.3
1.8
4.4
3.1
Operations Review
50 | CapitaRetail China Trust Annual Report 2014
