CLCT’s NPI down 7.4% YoY to $129.2m in H1

Its gross revenue was also down 7.4% to $184.5m.

CapitaLand China Trust (CLCT) posted a 7.4% year-on-year decline in net property income to reach $129.2m during the first half of the year.

In a statement, CLCT’s manager said its gross revenue also declined by 7.4% to $184.5m, with the distributable income at $63.1m, down by 8.1% YoY.

The company’s financials is affected by higher interest  expenses and lower contribution from CapitaMall Qibao as it stopped operations at end-March.

This was also impacted by foreign currency translations due to the strength of Singapore Dollar against the Renminbi, with the exchange rate increasing 8.9%.

In Renminbi, CLCT’s net property income and gross revenue both rose by 0.8% to RMB663.7m and RMB947.8m, respectively.

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“China’s GDP grew 6.3% year-on-year in 2Q 2023, and retail sales advanced by 8.2% in 1H 2023. CLCT’s diversified portfolio demonstrated resilience in 1H2023, with improved occupancies and positive rental reversions for both retail and new economy asset classes,” said CLCT Manager CEO Tan Tze Wooi.

“Our proactive and disciplined approach to strengthening our portfolio has led to improvements in retail occupancy over consecutive quarters. The introduction of new retail concepts and tenant offerings has attracted higher footfall, resulting in double-digit growth in tenant sales, with the leading malls surpassing pre-COVID levels in 2Q 2023,” he added.

The enhancement of the CapitaMall Grand Canyon and Rock Square are expected to be completed in the third quarter and will boost the company’s income in the second half of the year.

Tan added that the company’s portfolio is “well-positioned” to capitalise on business and consumption flows amidst the recovery of the macroenvironment and consumer confidence.