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CapitaLand Mall Trust (CMT) saw its Q2 2018 gross revenue and net property income increase 1.6 percent and 2.8 percent year-on-year to $171 million and $120.8 million respectively.
CMT attributed the stronger performance to higher gross rental income from Plaza Singapura, Bugis Junction, Tampines Mall and Bedok Mall.
The increase was partially offset by lower occupancy and rental rates on new and renewed leases at Bukit Panjang Plaza and JCube, as well as lower gross revenue from Sembawang Shopping Centre.
Q2 distributable income rose 2.9 percent to $100 million, while distribution per unit (DPU) increased 2.2 percent to 2.81 cents.
Based on the trust’s closing price of $2.14 per unit on 19 July, its annualised distribution yield was 5.27 percent for Q2 2018.
On a half-yearly basis, gross revenue increased 1.7 percent to $346.5 million from $340.7 million over the same period last year.
Net property income rose 3.7 percent to $246.4 million, while distributable income climbed 2.5 percent to $199.0 million. DPU stood at 5.59 cents, up 2.0 percent from H1 2017’s 5.48 cents.
“CMT overcame soft market conditions to deliver another set of stable results for 2Q 2018. Underpinned by our well-located shopping malls and proactive asset management, CMT’s portfolio occupancy remained resilient at 98.0 percent as at 30 June 2018, well above the average market occupancy of 92.5 percent,” said Tony Tan, CEO of CMT’s manager.
“We continually evaluate initiatives to strengthen the appeal of our malls through asset enhancement.”
In fact, a new mall entrance has been created at Westgate’s Level 1 to improve shopper circulation, he said. Escalators will also be added along with air-conditioned enclosure to the outdoor refreshment areas, with the works expected to be completed by Q4 2018.
He added that CMT completed the divestment of Sembawang Shopping Centre in Q2 2018.
“The net sale proceeds have been used to repay existing borrowings, leading to improved financial flexibility for CMT and a lower gearing of 31.5 percent as at 30 June 2018.”
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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