CMMT’s 3Q 2015 net property income grows 18.0% year-on-year
Underpinned by contribution from newly acquired Tropicana City Mall and higher contribution from revamped East Coast Mall
Kuala Lumpur, 16 October 2015 – CapitaLand Malaysia Mall REIT Management Sdn. Bhd.1 (“CMRM”), the manager of CapitaLand Malaysia Mall Trust (“CMMT”), is pleased to announce that CMMT achieved net property income (“NPI”) of RM59.8 million for the quarter ended 30 September 2015 (“3Q 2015”), 18.0% higher than the RM50.6 million for the same period last year (“3Q 2014”).
The improved performance was mainly due to new contribution from Tropicana City Mall and Tropicana City Office Tower, and higher contribution from East Coast Mall following the completion of its two-year asset enhancement works.
Distributable income for 3Q 2015 was RM41.7 million, a 10.5% increase over the RM37.7 million for 3Q 2014. The annualised distribution per unit (“DPU”) of 8.25 sen translates to an annualised distribution yield of 5.9% based on CMMT’s closing price of RM1.40 per unit on 15 October 2015.
In conjunction with the private placement to part finance the acquisition of Tropicana City Mall and Tropicana City Office Tower, an advance income distribution of 4.61 sen per unit for the period from 1 January to 8 July 2015, was paid to unitholders on 7 August 2015. As CMMT’s DPU is paid out on a half yearly basis, unitholders can expect to receive their DPU for the period from 9 July to 31 December 2015 by February 2016.
Mr David Wong Chin Huat, Chairman of CMRM, said: “Whilst the Malaysian economy expanded 4.9% in 2Q 20152, retail sales contracted 11.9%, following the implementation of the Goods and Services Tax. Looking ahead, the retail sales growth forecast for 2015 has been lowered to 3.1%3 as the weak ringgit is expected to affect consumers’ purchasing power due to higher costs of imported goods. Despite the challenging environment, we are confident that CMMT’s portfolio of quality malls, which are strategically located and largely focused on day-to-day necessity shopping, will continue to remain resilient through different economic cycles as they have done in the past.”
Ms Low Peck Chen, CEO of CMRM, said: “For the quarter under review, we completed the acquisition of Tropicana City Mall and Tropicana City Office Tower and have commenced recognition of its income contribution. As part of our strategy to achieve stronger positioning and better trade mix for Tropicana City Mall, the asset is currently undergoing tenant mix adjustments and we expect to grow income contribution upon its next tenancy renewal cycle. East Coast Mall also grew strongly following the completion of its asset enhancement, registering NPI growth of 40.8%, while Gurney Plaza continued its steady performance with NPI increasing 13.0%. With our proven track record in proactive asset management and retail management, we remain committed to deliver stable income distribution to our unitholders.
To further enhance the shopping experience and help drive tenants’ sales, we recently launched CAPITASTAR in Malaysia. CAPITASTAR is a multi-mall, multi-store card-less rewards programme by CapitaLand and is now available in Gurney Plaza in Penang. The rewards programme will be rolled out to the rest of our malls in the Klang Valley and Kuantan.”
Summary of CMMT’s results
Periods: 1 July to 30 September (“3Q”) and 1 January to 30 September (“YTD”)
1Formerly known as CapitaMalls Malaysia REIT Management Sdn. Bhd. 2Source: Bank Negara Malaysia Quarterly Bulletin, 2Q 2015. 3Malaysia Retail Industry Report, August 2015. 4The DPU for 3Q 2015 was based on the enlarged units of 2,024,799,200 units (refer to announcements dated 10 July and 28 August 2015). 5Based on closing price of RM1.40 per unit on 15 October 2015. 6Based on closing price of RM1.43 per unit on 20 October 2014.