SINGAPORE – CapitaLand China Trust (CLCT) posted a 1.6 per cent dip in net property income to 339.1 million yuan (S$65.5 million) for its first quarter ended March, from 344.5 million yuan in the first quarter of 2022.
Gross revenue for the quarter was down 2.9 per cent year on year to 475.5 million yuan from 489.9 million yuan previously.
The lower top-line figures were mainly attributed to the winding down of CapitaMall Qibao in Shanghai, downtime from asset enhancement initiatives and lag time from committed occupancy handovers.
On Tuesday, the real estate investment trust (Reit) manager noted that year-on-year portfolio occupancy fell across all sectors.
Retail portfolio occupancy fell marginally to 96.4 per cent in the first quarter of 2023 from 96.8 per cent the year before. Despite this, shopper traffic increased 10.6 per cent and sales climbed 15.4 per cent year on year, nearly reaching pre-pandemic levels.
The Reit’s business park portfolio occupancy declined year on year to 89.8 per cent in the first quarter from 94.7 per cent in the same period in 2022. Its logistics park portfolio occupancy fell to 95.6 per cent year on year from 97.6 per cent previously.
The manager of CLCT expects its retail portfolio to shift into a positive trajectory in 2023, riding on China’s reopening and pro-growth policies.
With its top tenant sectors aligned with the country’s policy priorities, the manager is also optimistic that its business park portfolio will benefit from the government’s turn towards technology development and innovation-driven growth.
However, it remains cautious that growth of its logistics park portfolio might be hampered by subdued global demand.
Units of CLCT were trading unchanged at $1.14 at 10.14am on Tuesday after its earnings announcement. THE BUSINESS TIMES
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