Dasin Retail Trust (SGX: CEDU) is the only business trust in Singapore’s market that provides direct exposure to China’s Pearl River Delta. The trust’s property portfolio comprises four retail malls located in Zhongshan City in the Guangdong province.
1. In early November, the trust, which listed only in January this year, announced its 2017 third quarter earnings. Here are nine things that investors should know about its latest results:
2. Revenue for the quarter came in at S$18.7 million, 21% higher than the forecast given in its initial public offering (IPO) prospectus. Meanwhile, the trust’s net property income of S$15.9 million was 25% better than the forecast.
3. The distribution per unit (DPU) of 2.23 cents was 12% higher than projected.
4. As of 30 September 2017, the trust had a gearing ratio of 31.5%.
5. The trust’s committed occupancy rate stood at 100% at the end of 2017’s third quarter.
6. Dasin Retail Trust has a mixed lease expiry profile, with 55% of its leases (based on rental income) expiring before 2020. It has a weighted average lease to expiry of 3.7 years (based on rental income) as of 30 September 2017.
7. As of 28 October 2017, the trust has right of first refusal on 19 properties in total, of which 10 are completed properties, and nine are under development.
8. According to China’s National Bureau of Statistics, the country’s economy expanded by 6.9% in the first nine months of 2017. Over the same period, retail sales in the country increased by 10.4% year-on-year.
9. Urban disposable income and expenditure per capita grew 6.6% and 5.9% year-on-year, respectively.
10. In its earnings release, the trust commented on its market condition and future:
“According to the Zhongshan Municipal Bureau of Statistics, Zhongshan’s GDP increased 7.5% year-on-year, reaching RMB256.7 billion for the first nine months of 2017. Consumer spending remains stable with retail sales increasing by 9.0% year-on-year to RMB98.2 billion.
The development of Guangdong-Hong Kong-Macau Greater Bay Area (粵港澳大灣區) is expected to enhance connectivity, labour mobility as well as enhance Zhongshan’s economic growth. This is expected to have a positive impact on Dasin Retail Trust’s properties in Zhongshan.”
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn't own shares in any companies mentioned.