Recently, Dasin Retail Trust (SGX: CEDU) released its 2018 second-quarter earnings update.
As a quick introduction, Dasin Retail Trust, which was listed in January 2017, is the only property trust listed here that has a direct exposure and focus on retail malls in China’s Pearl River Delta region. The trust’s portfolio currently comprises four malls in Zhongshan City of China’s Guangdong province.
Here are nine things investors should know about Dasin Retail Trust’s latest results:
1. The REIT’s gross revenue for the quarter came in at S$18.6 million, 65% higher than that of last year. Net property income of S$16.3 million was also 84% stronger than a year ago.
2. The REIT’s distribution per unit (DPU) of 1.76 cents was 16% higher year-on-year.
3. Based on Dasin Retail Trust’s annualised DPU of 7.18 cents, and its closing unit price of S$0.89 on 27 August 2018, the REIT has a trailing distribution yield of 8.1%.
4. As of 30 June 2018, the trust’s gearing stood at 31.5%, which is a safe distance from the regulatory ceiling of 45%.
5. The trust’s portfolio had a committed occupancy rate of 100% at the end of the quarter.
6. The weighted average lease to expiry (by gross rental income) was at 4.07 years as of 30 June 2018. 43.6% of the trust’s leases (again, based on rental income) will expire on or before 2020, and the remaining 56.4% of the leases will expire from 2021 onwards.
7. There are 20 properties that Dasin Retail Trust has right of first refusal (ROFR) on. 12 of the 20 properties have been completed, while the rest are still under development.
8. The rental reversion, as of 30 June 2018, was 12.23%.
9. In its earnings update, Dasin Retail Trust gave some useful comments on the state of China’s economy and retail environment:
“According to the China’s National Bureau of Statistics, economy grew 6.8% in the first quarter of 2018 to RMB19.9 trillion.
National retail sales increased 9.8% year-on-year to RMB9.0 trillion, while national urban disposable income and expenditure per capita grew 8.0% and 5.7% respectively.”
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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.