CMMT’s 1Q 2014 distribution per unit up 6.4% year-on-year
Distribution per unit of 2.32 sen for the quarter
Kuala Lumpur, 16 April 2014–CapitaMalls Malaysia REIT Management Sdn. Bhd. (“CMRM”), the manager of CapitaMalls Malaysia Trust (“CMMT”), is pleased to announce that CMMT achieved a distribution per unit (“DPU”) of 2.32 sen for the quarter ended 31 March 2014 (“1Q 2014”), 6.4% higher than the 2.18 sen for the same quarter last year (“1Q 2013”). The annualised DPU of 9.41 sen is similarly 6.4% higher than the same period last year, and translates to an annualised distribution yield of 6.5% based on CMMT’s closing price of RM1.44 per unit on 15 April 2014.
As CMMT’s DPU is paid out on a half yearly basis, unitholders can expect to receive their DPU for 1Q 2014, along with their DPU for 2Q 2014, in August 2014.
For the quarter under review, CMMT recorded distributable income of RM41.2 million, 6.9% higher than the RM38.5 million for 1Q 2013. Net property income (“NPI”) was RM52.5 million, an increase of 1.8% over the RM51.5 million for 1Q 2013. The increase was partly due to the completion of Phase 1 asset enhancement works at East Coast Mall in Kuantan.
Mr David Wong Chin Huat, Chairman of CMRM, said, “The Malaysian economy is expected to remain on a steady growth path, expanding by between 4.5% and 5.5%1 this year. Though the recent adjustment in property assessment fees and the hikes in electricity tariffs in Kuala Lumpur have had spillover effects on CMMT’s property operating expenses, we expect that our portfolio of necessity shopping malls will continue to deliver stable returns for unitholders.”
Ms Sharon Lim, CEO of CMRM, said, “Our malls continued to perform well in the first quarter – particularly East Coast Mall, which achieved net property income growth of 10.4% after the completion of its Phase 1 asset enhancement works in 2013. This is a strong reflection of our capabilities to enhance the value of our assets to further improve yields and returns for our unitholders. We have embarked on Phase 2, which involves the extension of the alfresco area and reconfiguration of the ground, first and second floors to further improve the trade mix at East Coast Mall. The asset enhancement initiative is expected to be completed before the end of this year. We will continue to proactively look for opportunities for asset enhancements as well as acquisitions to create value for our unitholders.”