CMT’s 2Q 2014 distributable income increases 6.5% year-on-year
2Q 2014 distribution per unit rises 6.3% year-on-year
Singapore, 23 July 2014 – CapitaMall Trust Management Limited (CMTML), the manager of CapitaMall Trust (CMT), is pleased to announce that CMT’s distributable income of S$93.4 million for the period from 1 April 2014 to 30 June 2014 (2Q 2014) was 6.5% higher than the S$87.7 million for the same period last year (2Q 2013).
Distribution per unit (DPU) for 2Q 2014 was 2.69 cents, a 6.3% increase over the 2.53 cents for 2Q 2013. This brings CMT’s DPU for the period from 1 January 2014 to 30 June 2014 (1H 2014) to 5.26 cents, a 5.4% increase over the DPU of 4.99 cents for the corresponding period in 2013 (1H 2013).
Based on CMT’s closing price of S$2.01 per unit on 22 July 2014, the distribution yield is 5.37%. Unitholders can expect to receive their 2Q 2014 DPU on 29 August 2014. The Books Closure Date is 1 August 2014.
Mr Wilson Tan, CEO of CMTML, said, “For the first half of 2014, we continued to deliver a good set of financial results, underpinned by a high occupancy rate of 98.6% as at 30 June 2014 for our portfolio of 16 malls.”
“Ongoing asset enhancement works for Bugis Junction, Tampines Mall and IMM Building are progressing well. Over at JCube, the mall began marketing its new Level 2 retail zone called J.Avenue – a trendy cluster of shops with a street shopping ambience – and the response from retailers has been very encouraging. To date, two-thirds of the 70 shops at J.Avenue have been taken up. J.Avenue is targeted to open progressively from September.”
“In addition, we plan to commence asset enhancement works for Bukit Panjang Plaza in the third quarter. The works involve creating a new two-storey food and beverage (F&B) block on Level 2, where the existing roof garden is located. The roof garden will be relocated to Level 4 beside the expanded public library and a new childcare centre, to create a new community and recreational zone. We will continue to proactively identify asset enhancement and acquisition opportunities to create more value for our unitholders.”
Summary of CMT’s results
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* 2Q 2013 and 1H 2013 had been restated to take into account the retrospective adjustments relating to FRS 111 Joint Arrangements.
CMT’s gross revenue grew 2.5% year-on-year to S$164.3 million for 2Q 2014, while net property income increased 4.4% compared to 2Q 2013. For 1H 2014, CMT’s gross revenue grew 4.1% year-on-year to S$329.0 million, while net property income increased 4.9% compared to 1H 2013.
During this period, 327 leases were renewed with a growth of 6.6% over preceding rental rates typically contracted three years ago. CMT’s portfolio registered a high occupancy rate of 98.6% as at 30 June 2014.
Refinancing of Debt Due in 2014
CMT fully redeemed the S$350.0 million convertible bonds due on 19 April 2014 upon maturity. There had been no conversion of the Convertible Bonds due 2014 since the date of their issue.
As at 30 June 2014, CMT’s average cost of debt and gearing ratio were 3.6% and 34.3% respectively.