CapitaLand Retail China Trust (CRCT) Q3FY17

Overall Summary

1. Slight drop of occupancy from 96.2% to 95.6% compare to previous quarter and drop in dividend compare to previous quarter due to disposal of CapitaMall Anzhen.
2. CapitaMall Minzhongleyuan have negative rental reversion for 270 sq m area -Even it is small area, kinda disappointed to see this though as previously reversion for Q1FY17 was 35.1% and Q2FY17 64.4%.
3. Bulk of the remaining lease to expire in Q417 come from CapitaMall Minzhongleyuan (26.1%) and CapitaMall Wuhu (14.1%). Let see if CapitaMall Mingzhongleyuan will be able to have good rental reversion as Q117 or Q217. As for CapitaMall Wuhu, nothing to be expected will see what the Manager will do with Wuhu.
4. Overall rental reversion is positive (average Q1FY17 was 3.6%, Q2FY17 was 7.1%, Q3FY17 is 7.5%)
5. Gearing at 35.4% with the borrowing cost at 2.44% and Interest coverage ratio at 6 times
6. Net Asset Value at $1.61

Dividend History for 2017

Dividend drop against Q217 from 2.62 cent to 2.37 cents. I am Expecting one time distribution for Q417 to level up the DPU due to the loss of income from CapitaMall Anzhen or a new acquisition to replace CapitaMall Anzhen

Q1 0.0274

Q2 0.0262

Q3 0.0237 (to be paid in Q4)

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