PRCT

PRCT: 2Q14 DPU of 0.95¢ (flat) brought 1H14 DPU to 1.9¢ (flat). Distributable income was also flat at $10.9m. Revenue was $4.5m while NPI was $0.8m as Jihua and Qingyang mall contributed $2.1m and $2.4m respectively, contrasting nil revenue last year. Total portfolio occupancy was 80.3%, while retail occupancy was 91.4%, weighed by Shenyang Longemont Offices’ 46.5% occupancy (Tower 1: 93% occupied, Tower 2: leasing commenced). Aggregate leverage stood at 29.3% with weighted average interest rate of 4.41%. Going forward, the Dongzhan Mall in Chengdu is expected to contribute to income by 3Q15, which is delayed by a quarter. Current anchor tenants secured include Cineplex and ice skating rink operators, and Yonghui Superstore. Phase 1 of the Beijing Tongzhou Integrated Development is expected to come on stream in FY17. NAV was $0.73 at end 2Q14, translating to 0.75x P/B. Annualized 1H14 DPU is 6.9% yield.