PCRT

PCRT: 3Q14 DPU and distributable income flat at 0.95¢ and $10.9m, from the drawdown of the earn-out support. Revenue soared 286.5% to $5.2m, while NPI of $2.1m reversed net property expenses of $2m a year earlier, mainly due to increases from Perennial Jihua Mall in Foshan, coupled by new income stream from Perennial Qingyang Mall in Chengdu which commenced operations last quarter. Meanwhile, share of JV’s profits, reflecting performance at Shenyang assets fell 9.1% to $1.6m, on impairment loss on receivables from master lease tenant Guangcai Group, an antique wholesale market operator. Portfolio occupancy at 80.3%, with retail assets occupancy at 92.1% and Shenyang Longemont Offices at 47% (effective occupancy of ~94% for one tower). Leasing of second office tower has begun. Aggregate leverage at 30.17% with weighted average interest rate of 4.4% p.a and debt weighted average term to expiry of 2.37 years. Perennial Dongshan Mall to open in 3Q15. Secured anchor tenants such as cinema and ice-skating rink. Currently in serious negotiation with mini-anchor tenants. BVPS of $0.75 translates to 0.7x P/B. Annualized 3Q14 yield is 7%