Perennial China Retail Trust

Perennial China Retail Trust (PCRT): Recorded 3Q13 DPU of 0.95¢ (-2.1% y/y) while distributable income rose 2.1% to $10.9m. This translates to a 9M13 annualized yield of 7% based on its last closing price of $0.535. Gross revenue was $1.3m compared to nil in 3Q12, after Jihua Mall in Foshan, China, commenced operations in Aug 2013, while net property expenses incurred grew to $1.9m vs $196k. Gearing was 27.96% at average interest rate of 4.3% and weighted average term to expiry of 1.64 years. Overall retail porfolio occupancy improved to 89%. In Chengdu, Qingyang Mall is on track to commence operations in 1Q14, while Dongzhan Mall is delayed one quarter to 1Q15. The Beijing Tongzhou integrated development project will kick off in 4Q13, with expected completion in 4Q16. PCRT has a NAV at 30 Sep of $0.73, compared to the current price of $0.54.