Higher rentals lift CMT’s revenue in Q3

Straits Times: Wed, Oct 19
CAPITAMALL Trust’s (CMT) third-quarter distributable income inched up 2.6 per cent to $77.4 million on the back of an increase in revenue partly driven by higher rentals. Distribution per unit (DPU) for the three months ended Sept 30 was 2.5 per…
CAPITAMALL Trust’s (CMT) third-quarter distributable income inched up 2.6 per cent to $77.4 million on the back of an increase in revenue partly driven by higher rentals.

Distribution per unit (DPU) for the three months ended Sept 30 was 2.5 per cent higher at 2.42 cents, bringing DPU for the first nine months of the year to 7.07 cents.

Net property income rose 6.1 per cent to $107.4 million compared with the figure in the same period last year, while gross revenue for the quarter was 7.4 per cent higher at $159.2 million.

This was partly due to the acquisition of Iluma near Bugis MRT station in April, which led to a $4 million jump in revenue, CMT said.

The trust’s other malls accounted for another $7 million of revenue gains, due mainly to higher rentals from new and renewed leases and staggered rentals.

CMT said in a statement that it was well-positioned to benefit from the growth in retail sales, with its malls located either in areas with large population catchments or within popular shopping and tourist destinations.

The retail sales index also continued to show positive growth, the firm noted, with sales – excluding motor vehicles – registering a 7.4 per cent year-on-year growth in August.

‘This, coupled with the large and diversified tenant base of the portfolio, will contribute to the stability and sustainability of the malls’ occupancy rates and rental revenues,’ CMT added.

But Mr James Koh, chairman of CapitaMall Trust Management – the manager of CMT – warned that although consumer sentiment in Singapore remains healthy, the firm is cautious about the economic outlook here, given worsening economic woes in the United States and Europe.

‘Notwithstanding this, CMT’s portfolio of predominantly necessity shopping malls has, in the past, proven its resilience during the global financial crisis,’ he added.

The firm will continue to focus on active lease management, value creation through asset enhancements, acquisition of yield-accretive properties, and selective participation in development projects to drive DPU growth.

CMT’s portfolio consists of 16 retail properties, including Tampines Mall, Bugis Junction, Plaza Singapura and JCube.

Most recently, a consortium of CapitaMalls Asia, CMT and CapitaLand unveiled plans to build a 25-storey retail and office development beside Jurong East MRT station with a total development cost of around $1.5 billion.

The site was tendered in May at a price of $969 million, or $1,012 per sq ft per plot ratio.

CMT’s earnings per unit rose to two cents from 1.91 cents the previous year, while net asset value per unit was $1.57 as of Sept 30, up from $1.55 as of Dec 31.

CMT’s units fell by one cent yesterday to $1.88.

esthert@sph.com.sg

Source: The Straits Times © Singapore Press Holdings Ltd

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