CapitaLand Malaysia Trust’s 3Q 2023 net property income grew 52.6% to RM58.3 million
25 Oct 2023
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CapitaLand Malaysia Trust achieved robust year-on-year growth in net property income for 3Q 2023, driven by higher revenue contributions from the majority of its retail properties, further bolstered by income contributions from Valdor Logistics Hub and Queensbay Mall.
Summary of CLMT’s results
|
3Q 2023 |
3Q 2022 |
Change (%) |
YTD 2023 |
YTD 2022 |
Change (%) |
Gross revenue (RM’000) |
103,636 |
71,003 |
46.0 |
286,880 |
206,918 |
38.6 |
Net property income (RM’000) |
58,322 |
38,214 |
52.6 |
154,391 |
111,706 |
38.2 |
Distributable income (RM’000) |
28,701 |
22,246 |
29.0 |
77,140 |
64,273 |
20.0 |
Distribution per unit (sen) |
1.05 |
1.01 |
4.0 |
2.98 |
2.96 |
0.7 |
Kuala Lumpur, 25 October 2023 – CapitaLand Malaysia REIT Management Sdn. Bhd. (CMRM), the manager of CapitaLand Malaysia Trust (CLMT), announced today a 52.6% year-on-year increase in net property income (NPI) of RM58.3 million for the quarter ended 30 September 2023 (3Q 2023). Supported by income contributions from Queensbay Mall and higher revenue contributions from its retail properties, gross revenue for 3Q 2023 saw an uplift of 46.0% year-on-year to RM103.6 million.
In 3Q 2023, distributable income increased by 29.0% year-on-year to RM28.7 million with the Distribution per Unit (DPU) for this quarter reaching 1.05 sen, marking a 4.0% rise compared to the same period last year.
For the period 1 January to 30 September 2023 (YTD 2023), the distributable income amounted to RM77.1 million, representing a 20.0% increase from the RM64.3 million recorded during the same period in the previous year (YTD 2022). DPU for YTD 2023 stood at 2.98 sen.
Mr Lui Chong Chee, Chairman of CMRM, said: “Through proactive asset and capital management, CLMT has continued to deliver strong performance in 3Q 2023 despite rising business costs. While we anticipate steady domestic demand will anchor Malaysia’s economic growth for the remainder of 2023, we are mindful of upcoming challenges, including increasing global macroeconomic uncertainties and heightened competition stemming from the influx of new retail spaces in the Klang Valley. In view of these challenges, we will maintain our proactive approach to portfolio and asset management and remain on a lookout for opportunities to expand CLMT’s portfolio and enhance our income diversification.”
Mr Lui Chong Chee, Chairman of CMRM
Our strategic focus on improving the quality of our portfolio has delivered strong operating performance and continued growth in income and distributions for our Unitholders.
Mr Tan Choon Siang, CEO of CMRM
Mr Tan Choon Siang, CEO of CMRM
Proposed divestment of 3 Damansara Office Tower
Mr Tan Choon Siang, CEO of CMRM, said: “Demand for retail space remains robust, with the retail portfolio achieving a positive rental reversion of 6.3%. Shopper traffic has increased by 21.6%[1] over the same period last year, driven by exciting activation programmes designed to create unique experiences for our mall visitors. This strategy has also enabled our tenants to increase sales per square foot by 9.1% year-on-year. Compared to the same period in 2019, tenant sales per square foot grew 23.4%.”
“During the quarter, we announced our intention to divest 3 Damansara Office Tower as part of our ongoing portfolio reconstitution strategy. We also completed the acquisition of the Glenmarie Distribution Centre and have initiated the retrofitting process to convert the warehouse into a temperature-controlled distribution centre. This move will further strengthen CLMT’s presence in Malaysia’s growing logistics sector. On the retail front, the asset enhancement initiative at 3 Damansara is on track to complete in 4Q 2023. We are also intensifying our efforts to refresh the tenant mix offerings at Sungei Wang Plaza and The Mines to enhance the malls’ attractiveness. Despite an increasingly challenging macroeconomic environment, we remain steadfast in pursuing our ongoing portfolio reconstitution strategy and are well-positioned to continue to deliver long-term sustainable returns to Unitholders."
