CAPITARETAIL CHINA TRUST 1H 2015 RESULTS

Revenue increased 9.7% y-o-y
Net Income increased 6.1% y-o-y
Distribution S$0.0537 and increase of 7.6% y-o-y
On target to achieve a Distribution of S$0.1083
Based on my BUY call at S$1.64, it represents at yield of 6.6%

Still maintain BUY position up to S$1.65. This is the NAV per Unit. Any price above S$1.65 will erode the yield.

Balance sheet remains sound with gearing at 27.7%.

However, economists are expecting China's growth to take a hit due to the stock market's volatility. This could impact the 2H 2015 results negatively, but will be mitigated by a pro-active management team. Recent new tenants include Tommy Hilfiger and Nike at Capitamall Wangjing, The Bellagio restaurant at Capitamall Xizhimen, British retailer New Look and Korean cosmetic brands Etude and Innisfree at Capitamall Grand Canyon, among others.

My disclosure: I own shares of CapitaRetail China.