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CapitaLand Mall Trust (CMT) saw its net property income rose 1.6 percent to $121.4 million during the third quarter of 2017, from $119.5 million over the same period last year.
Gross revenue dipped 0.2 percent to $169.4 million, while distributable income rose 0.3 percent to $98.7 million. Distribution per unit (DPU) remained steady at 2.78 cents.
For year-to-date September 2017, distributable income rose 0.2 percent to $292.9 million, while gross revenue and net property income slipped 2 percent and 1.2 percent to $510 million and $359 million, respectively. DPU increased 0.1 percent to 8.26 cents.
The trust’s manager attributed the lower gross revenue recognition for Q3 2017 to lower rental achieved for Plaza Singapura, Junction 8 and Bedok Mall. The lower gross revenue for year-to-date September 2017, on the other hand, was primarily attributed to the closure of Funan for redevelopment.
Despite the soft market conditions, CMT witnessed a 0.2 percent increase in shopper traffic for the first nine months of the year, said Tony Tan, CEO of the trust’s manager.
“Portfolio occupancy as at 30 September 2017 reached a high of 99.0 percent, up from 98.6 percent at the end of last quarter,” he said.
He noted that the divestment of Victory SR Trust, the owner of Funan’s serviced residence component, during the quarter served to reduce CMT’s funding requirements, lower development risks while improving the return on investment for Funan’s redevelopment.
“We are glad to have found a strong and reliable partner in Ascott to jointly transform Funan into a new paradigm for live-work-play in Singapore.”
Artist’s Impression of Funan. (Photo: CapitaLand)
This article was edited by Keshia Faculin.
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