Investments

CMT holds 122.7 million units in CapitaLand Retail China Trust (CRCT), which translates to an approximate 14.55% stake as at 31 December 2015. The fair value of CMT's investment in CRCT represents 1.8% of CMT and its subsidiaries' (CMT Group) total asset size as at 31 December 2015. 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 China shopping mall real estate investment trust (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 on a long-term basis 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 of China's cities. The malls are CapitaMall Xizhimen, CapitaMall Wangjing, CapitaMall Grand Canyon, CapitaMall Anzhen and CapitaMall Shuangjing in Beijing; CapitaMall Qibao in Shanghai; CapitaMall Minzhongleyuan in Wuhan, Hubei Province; CapitMall Erqi in Zhenzhou, Henan Province; CapitaMall Saihan in Hohhot, Inner Mongolia; and CapitaMall Wuhu in Wuhu, Anhui Province. As at 31 December 2015, the total asset size of CRCT was approximately S$2.6 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 (BHG), Carrefour and Wal-Mart under master-leases or long-term leases, which provide CRCT's Unitholders with stable and sustainable returns. The anchor tenants are complemented by popular specialty brands such as BreadTalk, innisfree, KFC, Nanjing Impressions, Nike, Sephora, Starbucks, UNIQLO, Watsons and Zara.

CRCT has long-term growth potential through its right of first refusal arrangements to acquire assets held by CapitaLand Mall China Income Fund I, CapitaLand Mall China Income Fund II, CapitaLand Mall China Income Fund III, CapitaLand Mall Development Fund III, as well as CapitaLand Mall Asia, which is the wholly-owned shopping mall business unit of CapitaLand Limited, one of Asia's largest real estate companies headquartered and listed in Singapore.

CRCT delivered a healthy set of results for the financial year 2015 (FY 2015). Gross revenue and net property income were RMB1,005.0 million (S$220.3 million) and RMB643.5 million (S$141.1 million), up 1.8% and 0.1% year-on-year respectively. Distributable income grew 10.3% year-on-year to S$89.2 million. Distribution per unit (DPU) in FY 2015 was 10.60 Singapore cents. Average daily shopper traffic and average monthly tenants' sales per square metre at CRCT's malls grew 1.8%1 and 11.6%1 year-on-year respectively. Across the portfolio, CRCT achieved healthy rental reversion of 8.1% and operated at a high occupancy rate of 95.1%.

  1. Including multi-tenanted malls except CapitaMall Minzhongleyuan, which was reopened on 1 May 2014 after the completion of asset enhancement works from 1 July 2013 to 30 April 2014.