CMT’s 4Q 2013 distribution per unit up 15.3% year-on-year
Full year distribution per unit up 8.6% year-on-year
Singapore, 22 January 2014 – – CapitaMall Trust Management Limited (CMTML), the manager of CapitaMall Trust (CMT), is pleased to announce that CMT’s distributable income of S$94.4 million for the period 1 October 2013 to 31 December 2013 (4Q 2013) was 18.3% higher than the S$79.8 million for the same period in 2012 (4Q 2012).
For 4Q 2013, distribution per unit (DPU) was 2.72 cents, a 15.3% increase over the 2.36 cents for 4Q 2012. This brings CMT’s DPU for the Full Year 2013 (FY 2013) to 10.27 cents, 8.6% higher than the DPU of 9.46 cents for the corresponding period in 2012 (FY 2012).
Unitholders can expect to receive their 4Q 2013 DPU on 28 February 2014. The distribution yield is 5.74%, based on CMT’s closing price of S$1.88 per unit on 21 January 2014. The Books Closure Date is 3 February 2014.
Mr Danny Teoh, Chairman of CMTML, said, “CMT continued to deliver steady operational performance for 2013. Growing household income and low unemployment in Singapore are expected to continue to underpin retail spending. We believe CMT will benefit from this as our malls are strategically located to conveniently serve the large population catchment areas and cater predominantly to necessity shopping.”
Mr Wilson Tan, CEO of CMTML, said, “For FY 2013, our tenants’ sales per square foot increased 2.5% and shopper traffic grew 3.1% year-on-year. During the fourth quarter, we completed Phase 1 of Bugis Junction’s asset enhancement works and opened Westgate shopping mall. Westgate started operations on 2 December 2013, with a committed occupancy of about 90.0% as at 31 December 2013. We are also happy to report that we have granted options to a consortium to purchase Westgate Tower. The consortium has up to 24 January 2014 to exercise the options. This year, we will embark on the asset enhancement works for Tampines Mall and Phase 2 of Bugis Junction, to further create sustainable value for our unitholders.”
Summary of CMT’s results
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Steady Operational Performance
CMT’s gross revenue grew 6.9% year-on-year to S$185.7 million for 4Q 2013, while net property income increased 11.1% compared to 4Q 2012.
For FY 2013, CMT’s gross revenue grew 10.2% year-on-year to S$729.2 million, while net property income increased 12.9% year-on-year to S$502.7 million. A total of 629 leases were renewed with a positive growth of 6.3% over preceding rental rates typically contracted three years ago. CMT’s portfolio registered a high occupancy rate of 98.5% as at 31 December 2013.
Proactive Capital Management
On 13 November 2013, CMT MTN Pte. Ltd. issued ¥10 billion of fixed rate notes due 2020 under the S$2.5 billion Multicurrency Medium Term Note Programme (MTN Programme). The proceeds from these notes have been swapped to S$126.0 million at a S$ fixed interest rate of 3.119% per annum.
On 18 December 2013, CMT MTN issued fixed rate notes of S$100.0 million due 2020 through its MTN Programme at 3.15% per annum.
CMT’s average cost of debt and gearing ratio were 3.4% and 35.3% respectively as at 31 December 2013.
Updates on Asset Enhancement Initiatives (AEI) and Greenfield Development
Phase 1 of asset enhancement works at Bugis Junction was completed in October 2013. Phase 2 works will commence in 1Q 2014 and are expected to be completed in 3Q 2014.
Asset enhancement works for Tampines Mall will commence in 1Q 2014. The AEI involves converting Level 5 roof area into new lettable area to house enrichment schools and educational tenants, and reconfiguring Level 2 and 3 to enhance the fashion offerings. The projected capital expenditure for this initiative is S$36.0 million with an expected return on investment of 8.0%. There will also be additional enhancement works to rejuvenate the mall, including a new facade and an upgraded covered walkway to connect the mall to Tampines MRT station. The asset enhancement works are expected to be completed in 4Q 2015.
In May 2011, CMT took a 30.0% stake in the Westgate integrated development in Jurong Gateway, comprising a shopping mall named Westgate and an office tower named Westgate Tower. Westgate commenced operations on 2 December 2013 while Westgate Tower is expected to be completed by end 2014.
On 3 January 2014, options were granted to a consortium to purchase Westgate Tower for S$579.4 million. The consortium has up to 24 January 2014 to exercise the options.