CMMT posts net property income of RM202.1 million for FY 2019
- Distribution per unit of 6.25 sen for the year
- Completion of JUMPA @ Sungei Wang is expected to contribute positively to the portfolio’s future performance
Kuala Lumpur, 22 January 2020 – CapitaLand Malaysia Mall REIT Management Sdn. Bhd. (CMRM), the manager of CapitaLand Malaysia Mall Trust (CMMT), announced today that CMMT achieved a net property income (NPI) of RM202.1 million for the year 1 January to 31 December 2019 (FY 2019). Higher year-on-year revenue from Gurney Plaza, East Coast Mall and Tropicana City Office Tower partially mitigated lower contributions from the Klang Valley1 shopping malls.
Distributable income for FY 2019 was RM128.0 million and distribution per unit (DPU) was 6.25 sen. For the quarter ended 31 December 2019 (4Q 2019), CMMT recorded a DPU of 1.52 sen. Based on CMMT’s closing price of RM1.00 on 21 January 2020, the annualised DPU of 6.03 sen for 4Q 2019 translates to an annualised distribution yield of 6.0%. Unitholders will receive the total DPU of 3.03 sen for the period from 1 July to 31 December 2019 on 28 February 2020. The book closure date is 7 February 2020.
As part of proactive capital management, CMMT issued RM300.0 million of 3.5-year unrated and secured Medium Term Notes (MTN) to redeem the outstanding MTN in December 2019 at a lower coupon rate of 4.07% per annum for the first two years.
Mr David Wong, Chairman of CMRM, said: “Despite an increasingly challenging operating environment, CMMT has delivered a set of credible results for FY 2019 through proactive asset and capital management. We expect consumer sentiments will continue to remain cautious in 2020. Notwithstanding the challenges, we remain committed to deliver sustainable income distributions for unitholders in the long term.”
Ms Low Peck Chen, CEO of CMRM, said: “Gurney Plaza and East Coast Mall, which are leading malls in the Northern and East Coast regions respectively, continued to chart year-on-year growth in FY 2019. The sustained growth of both the malls, which collectively accounted for about 75% of CMMT’s NPI, has helped to moderate the lower contribution from our Klang Valley malls that have been affected by rising competition. With the recent opening of JUMPA @ Sungei Wang, we expect Sungei Wang’s revenue contribution to improve gradually going forward.”
“In 4Q 2019, we commenced asset enhancement works at Gurney Plaza’s Level 4 to bring in a greater variety of dining options. To improve the diversity of tenant mix in our Klang Valley malls, Beast Park – a new-to-market climbing gym-cum-adventure park – has opened at JUMPA @ Sungei Wang and shoppers now enjoy more food and beverage offerings at 3 Damansara.”
“Shoppers at The Mines can look forward to a new supermarket and family entertainment offering opening soon. The upcoming opening of MinNature's 3D printed miniature exhibition – the largest of its kind in Malaysia – at JUMPA @ Sungei Wang next month is expected to draw more shoppers and tourists. As part of our proactive retail management, we will be working closely with our anchor tenants to refresh their offerings and strengthen the trade mix in our portfolio.”
Summary of CMMT results
|
4Q 2019 |
4Q 2018 |
Change (%) |
FY 2019 |
FY 2018 |
Change (%) |
| Gross revenue (RM ’000) | 85,802 |
86,909 |
(1.3) |
342,276 |
350,146 |
(2.2) |
| Net property income (RM ’000) | 49,844 |
52,827 |
(5.6) |
202,120 |
214,969 |
(6.0) |
Distributable income (RM ’000) |
31,187 |
40,475 |
(22.9) |
127,991 |
161,348 |
(20.7) |
DPU (sen) |
||||||
For the period |
1.52 |
1.98 |
(23.2) |
6.25 |
7.90 |
(20.9) |
Annualised DPU |
6.03 |
7.86 |
(23.3) |
6.25 |
7.90 |
(20.9) |
Annualised distribution yield |
6.0%2 |
7.4%3 |
N.M. |
6.3%2 |
7.5%3 |
N.M. |
N.M. – Not meaningful
1 Comprises Sungei Wang, 3 Damansara and The Mines.
2 Based on closing price of RM1.00 per unit on 21 January 2020.
3 Based on closing price of RM1.06 per unit on 28 January 2019.