CMT holds 122.7 million units in CapitaRetail China Trust (CRCT), which translates to an approximate
14.82% stake as at 31 December 2014. The fair value of CMT’s investment in CRCT represents 2.0%
of CMT and its subsidiaries’ (CMT Group) total asset size as at 31 December 2014. Through its
investment in CRCT, CMT’s Unitholders are provided with an opportunity to enjoy the upside from
China’s growth potential without CMT’s risk profile being significantly altered.
CRCT is the first and only China shopping mall REIT listed in Singapore, with a portfolio of 10
income-producing shopping malls. Listed on the Singapore Exchange Securities Trading Limited
(SGX-ST) on 8 December 2006, it is established with the objective of investing in a diversified
portfolio of income-producing real estate used primarily for retail purposes and located primarily in
China, Hong Kong and Macau.
CRCT’s geographically diversified portfolio of quality shopping malls is located in six cities in China.
The malls are CapitaMall Xizhimen, CapitaMall Wangjing, CapitaMall Grand Canyon, CapitaMall
Anzhen and CapitaMall Shuangjing in Beijing; CapitaMall Qibao in Shanghai; CapitaMall Erqi in
Zhengzhou, Henan Province; CapitaMall Saihan in Huhhot, Inner Mongolia; CapitaMall Wuhu in
Wuhu, Anhui Province; and CapitaMall Minzhongleyuan in Wuhan, Hubei Province. As at
31 December 2014, the total asset size of CRCT was approximately S$2.4 billion.
All the malls in the portfolio are positioned as one-stop family-oriented shopping, dining and
entertainment destinations for the sizeable population catchment areas in which they are located,
and are accessible via major transportation routes or access points. A significant portion of the
properties’ tenancies consists of major international and domestic retailers such as Beijing Hualian
Group and Carrefour under master leases or long-term leases, which provide CRCT Unitholders with
stable and sustainable returns. The anchor tenants are complemented by popular specialty brands
such as KFC, Paris Baguette, Pizza Hut, Sephora, UNIQLO, Vero Moda, Watsons and Zara.
CRCT has long-term growth potential from its right of first refusal arrangements to acquire assets held
by CapitaMalls China Income Fund, CapitaMalls China Income Fund II (previously known as
CapitaMalls China Incubator Fund), CapitaMalls China Income Fund III (previously known as
CapitaMalls China Development Fund II), CapitaMalls China Development Fund III, as well as
CapitaMalls Asia, which is a wholly-owned subsidiary of CapitaLand Limited, one of Asia’s largest
real estate companies headquartered and listed in Singapore.
CRCT delivered a strong set of results for the financial year 2014 (FY 2014). Gross revenue and net
property income were RMB987.6 million (S$203.3 million) and RMB643.1 million (S$132.4 million), up
24.2% and 25.7% respectively from that for financial year 2013. Distributable income grew 15.4%
year-on-year to S$80.9 million. Distribution per unit (DPU) in FY 2014 was 9.82 Singapore cents.
Shopper traffic and tenants’ sales at CRCT’s malls grew 3.9%
1
and 16.2%
1
respectively compared to
the previous year. Across the portfolio, CRCT achieved strong rental reversion of 23.1% and operated
at a high occupancy rate of 95.9%.
1 Consists of shoppers at multi-tenanted malls except CapitaMall Minzhongleyuan, as asset enhancement works was completed
on 30 April 2014 and CapitaMall Grand Canyon as the acquisition was completed on 30 December 2013.
CapitaRetail China Trust
130 | CapitaMall Trust Annual Report 2014
