CMT’s 1Q 2014 distribution per unit increases 4.5% year-on-year
Singapore, 23 April 2014– CapitaMall Trust Management Limited (CMTML), the manager of CapitaMall Trust (CMT), is pleased to announce that CMT’s distribution per unit (DPU) for the period 1 January 2014 to 31 March 2014 (1Q 2014) was 2.57 cents, 4.5% higher than the 2.46 cents for the same period in 2013 (1Q 2013). Distributable income for 1Q 2014 was S$89.1 million, a 4.5% increase over the S$85.3 million for 1Q 2013.
Based on CMT’s closing price of S$1.99 per unit on 22 April 2014, the distribution yield is 5.24%. Unitholders can expect to receive their 1Q 2014 DPU on 30 May 2014. The Books Closure Date is 2 May 2014.
Mr Danny Teoh, Chairman of CMTML, said, “We are pleased that CMT continued to deliver steady financial returns to our unitholders in the first quarter of 2014.” Mr Wilson Tan, CEO of CMTML, said, “We will continue to focus on actively managing our existing portfolio and executing our current asset enhancement initiatives at Bugis Junction and Tampines Mall. In addition, we will embark on the next phase of asset enhancement works at IMM Building, to increase the number of outlet stores and to further strengthen its positioning as a value focused mall. We will also reconfigure Level 2 of JCube to include more than 50 retail units that will enhance the shopping experience.”
Summary of CMT’s results
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* 1Q 2013 had been restated to take into account the retrospective adjustments relating to FRS 111 Joint Arrangements.
CMT’s gross revenue grew 5.8% year-on-year to S$164.7 million for 1Q 2014, while net property income increased 5.3% compared to 1Q 2013.
During the quarter, 172 leases were renewed with a positive growth of 6.2% over preceding rental rates typically contracted three years ago. CMT’s portfolio registered a high occupancy rate of 98.8% as at 31 March 2014.
Proactive Capital Management
On 3 February 2014, CMT MTN Pte. Ltd. issued ¥5 billion of floating rate notes due 2021 under the S$2.5 billion Multicurrency Medium Term Note Programme. The proceeds from these notes have been swapped to S$62.0 million at a S$ fixed interest rate of 3.148% per annum.
On 20 February 2014, CMT issued S$350.0 million 7-year retail bonds under the S$2.5 billion Retail Bond Programme at an interest rate of 3.08% per annum.
CMT fully redeemed the S$350.0 million convertible bonds due on 19 April 2014 upon maturity.
As at 31 March 2014, CMT’s average cost of debt and gearing ratio were 3.5% and 35.1% respectively.
Updates on Asset Enhancement Initiatives (AEI) and Greenfield Development
On 23 January 2014, a consortium entered into sales and purchase agreements to purchase Westgate Tower for S$579.4 million (CMT’s 30.0% share is S$173.8 million). Upon obtaining Temporary Occupation Permit for the office strata units, CMT is expected to recognise a net gain of approximately S$45.0 million.
Westgate Wonderland, the 11,000 square foot outdoor playground located on Westgate’s Level 4, opened on 26 February 2014. The thematic outdoor playground immerses children in a larger-than-life garden surrounded by oversized replicas of flora and fauna, including gigantic insects, musical flowers, a 10-metre tall tree house and an enormous watering can that sprays water.
As at end-March 2014, 92.0% of the total retail space at Westgate was committed.
Asset enhancement works for JCube will commence in 2Q 2014. The AEI involves reconfiguring Level 2 to include more than 50 retail units. This will enhance its position as a leisure and entertainment focused mall. In addition, we will be reconfiguring part of Basement 1 to increase the number of kiosks to provide wider food and beverage options. The asset enhancement works are expected to be completed in the second half of 2014.
At IMM Building, the first phase of repositioning as a value focused mall has been completed and the new outlet stores are trading well. In the next phase of asset enhancement works, we will increase the number of outlet stores and reconfigure Level 1, 2 and 3 to enhance the outlet shopping experience.