CapitaRetail China Trust 2018 Q3 Result

CapitaRetail China Trust (CRCT) Q3 results give a few positives. This show that China's domestic consumption is strong as the middle income grows. Results also show rise in shopper traffics and sales of tenants. DPU increase 1.7% Y-on-Y, YTD DPU of 7.8cents present a 7.7% yield at the price of $1.36. Debt has been refinance and hence no refinancing needed till 2020.

Rental reversion
Rental reversion is tremendously high for properties acquired in 2017, CapitaMall Xinnan and Rock Square.

Conclusion
Gross revenue has fallen YTD 2018 in terms of SGD however NPI( Inluding Joint Venture Rock Square) has approximately the same as YTD 2017. However, Distribution amount is higher in 2018. This is likely because of the distribution for the divestment of Anzhen.

So once this distribution from Anzhen eased, DPU should drop. I believe CRCT's  management is confident the rental reversion will continue to increase to cover up the difference.

CRCT's NAV from Q2 $1.71 to $1.57, PB ratio is now 0.87. This is maybe due to depreciation of the RMB. Gearing at 35.7%, Interest cover 5.9x.

Vested @ $1.43