CMMT’s FY 2015 net property income up 8.4% year-on-year
Mainly contributed by completion of East Coast Mall’s asset enhancement works and acquisition of Tropicana City Mall and Tropicana City Office Tower
Distribution per unit of 8.60 sen for the year
Kuala Lumpur, 20 January 2016 – CapitaLand Malaysia Mall REIT Management Sdn. Bhd.1 (CMRM), the manager of CapitaLand Malaysia Mall Trust (CMMT), is pleased to announce that CMMT’s net property income (NPI) for the year from 1 January to 31 December 2015 (FY 2015) was RM226.4 million, up 8.4% over the RM208.9 million for FY 2014. NPI for the period from 1 October to 31 December 2015 (4Q 2015) was RM60.6 million, 11.0% higher than RM54.6 million for the same period in 2014 (4Q 2014).
Distributable income for FY 2015 was RM162.8 million, an increase of 2.8% over the RM158.4 million for FY 2014. For 4Q 2015, CMMT recorded a distribution per unit (DPU) of 2.092 sen, which brings total DPU for FY 2015 to 8.60 sen. Based on CMMT’s closing price of RM1.42 per unit on 19 January 2016, this translates to a distribution yield of 6.1%.
Unitholders can expect to receive the total DPU of 3.99 sen per unit for the period from 9 July 20153 to 31 December 2015 on 29 February 2016. The book closure date is 5 February 2016.
Mr David Wong Chin Huat, Chairman of CMRM, said: “Although the Malaysian economy expanded 4.7% in the third quarter of 20154 , consumer sentiment remains affected by higher costs of living following the implementation of the Goods and Services Tax and the weakening ringgit. The retail sales growth forecast for 2015 has been revised to 2.0%5. Despite the challenging operating environment, CMMT has delivered another set of steady results for FY 2015. We remain 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 even in this uncertain macroeconomic environment, as it has in the past.”
Ms Low Peck Chen, CEO of CMRM, said: “FY 2015 saw a DPU drop of 3.5% to 8.60 sen due to lower NPI contribution from Sungei Wang Plaza, which is temporarily impacted by the ongoing Mass Rapid Transit works nearby. However, this was mitigated by the revamped East Coast Mall which achieved strong NPI growth of 25.5% year-on-year and the steady growth of both Gurney Plaza and The Mines. We also added another asset to CMMT’s portfolio with the acquisition of Tropicana City Mall and Tropicana City Office Tower in 2015, and it has contributed positively to our bottom line. The shopping mall is currently undergoing tenant mix adjustments to achieve stronger positioning and better trade mix to grow income contribution upon the next tenancy renewal cycle.”
“We continually reinvent our malls so that they remain attractive to shoppers. During the financial year, we carried out asset enhancement initiatives at Gurney Plaza and The Mines. At Gurney Plaza, we reconfigured retail space on Level 3 to offer shoppers more food and beverage (F&B) options. At The Mines, four units at the secondary entrance on Level 1 were reconfigured to create an F&B cluster, to add to the mall’s F&B offerings.”
“With our proven track record in proactive asset management and retail management, we remain committed to deliver stable income distribution to our unitholders in 2016 as we continue to identify asset enhancement initiatives for our existing assets. In addition, to further reward our loyal shoppers, we will be rolling out the CAPITASTAR programme to the rest of our malls in Klang Valley and East Coast Mall this year. CAPITASTAR is a multi-mall, multi-store card-less rewards programme by CapitaLand, which is already available in Penang.”
Summary of CMMT’s results
Periods: 1 October to 31 December (4Q) and 1 January to 31 December (FY)
1 Formerly known as CapitaMalls Malaysia REIT Management Sdn. Bhd.
2 The DPU for 4Q 2015 was based on the enlarged units of 2,024,799,200 units (refer to announcements dated 10 July and 28 July 2015).
3 An advance DPU of 0.18 sen for the period from 1 July to 8 July 2015 was paid on 7 August 2015 following the placement of new CMMT units for the acquisition of Tropicana City Mall and Tropicana City Office Tower.
4 Source: Bank Negara Malaysia Quarterly Bulletin, 3Q 2015.
5 Source: Malaysia Retail Industry Report, December 2015.
6 Based on closing price of RM1.42 per unit on 19 January 2016.
7 Based on closing price of RM1.43 per unit on 19 January 2015.