Investments - CapitaLand Retail China Trust

CMT holds 122.7 million units in CapitaLand Retail China Trust (CRCT), which translates to an approximate 12.51% stake as at 31 December 2018. The fair value of CMT's investment in CRCT represents 1.6% of CMT and its subsidiaries' (CMT Group) total asset size as at 31 December 2018. 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 (stock code: AU8U) is the first China shopping mall real estate investment trust (REIT) in Singapore, with a portfolio of 11 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 incomeproducing real estate used primarily for retail purposes and located primarily in China, Hong Kong and Macau.

CRCT properties are strategically located in densely populated areas with good connectivity to public transport. The malls are positioned as one-stop familyoriented destinations housing a wide range of lifestyle offerings that cater to varied consumer preferences in shopping, dining and entertainment. As at 31 December 2018, CRCT's portfolio comprised a diverse mix of approximately 1,600 leases, which include leading brands UNIQLO, Xiaomi, ZARA, Nanjing Impressions, Nike, Sephora, Starbucks and Sisyphe. Working closely with these tenants, CRCT malls offer engaging retail experiences that attract more than 114 million shoppers every year.

CRCT's geographically diversified portfolio of quality shopping malls, with a total gross rentable area of approximately 700,000 sq m, is located in eight Chinese cities. The malls are CapitaMall Xizhimen, CapitaMall Wangjing, CapitaMall Grand Canyon and CapitaMall Shuangjing in Beijing; Rock Square (51% interest) in Guangzhou; CapitaMall Xinnan in Chengdu; CapitaMall Qibao in Shanghai; CapitaMall Minzhongleyuan in Wuhan; CapitaMall Erqi in Zhengzhou; CapitaMall Saihan in Hohhot and CapitaMall Wuhu (51% interest) in Wuhu. As at 31 December 2018, CRCT's total assets were S$3.0 billion, a fourfold increase from CRCT's listing.

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.

CRCT delivered a healthy set of results for the financial year (FY) 2018. Gross revenue and net property income were RMB1,092.3 million (S$222.7 million) and RMB722.9 million (S$147.4 million), down 2.7% and 1.0% year-on-year respectively. Income available for distribution was S$99.7 million. Distribution per unit in FY 2018 was 10.22 Singapore cents. Across the portfolio, CRCT achieved healthy rental reversion of 10.9% and portfolio occupancy was 97.5% as at 31 December 2018.