CapitaRetail China Trust will pay 8.14 cents per unit for the full year 2009, up 8.1 per cent from a year ago.
Its distributable income for the year rose 11.6 per cent on-year to S$51.2 million, while net property income went up 5.4 per cent.
Chinese consumers continued to spend through the global recession last year, and that helped sales of consumer goods in China, excluding cars, to grow about 14 per cent in 2009.
The consensus among analysts is that the Chinese government’s stimulus measures are expected to further push up domestic consumption this year. That is one reason why CapitaRetail China Trust is particularly bullish about China’s economic outlook.
“China is trying to change its economy and by stimulating domestic consumption, I think we will benefit from it,” said Wee Hui Kan, chief executive officer of CapitaRetail China Trust.
“What is key to us is that we must know where the demand comes from, and we need to adjust our malls to suit that, and I think the trend will continue for quite a number of years.”
While the trust grew its distribution per unit by 8.1 per cent for the full year, the fourth quarter was largely weaker. DPU fell 10.1 per cent on-year in the three months to December to 2.04 cents due to a weaker Chinese yuan against the Singapore dollar.
CapitaRetail China Trust currently has eight malls under its portfolio in China, and the firm said it is positioned to address suitable expansion opportunities as and when they arise.
It added that it has refinanced S$88 million worth of loans due next month, and remains confident of its ability to refinance its debts when they mature.
Unit holders can expect to receive their distribution on March 25.
Source : Channel NewsAsia – 29 Jan 2010