CMMT records net property income of RM59.7 million for 1Q 2017
Distribution per unit of 2.08 sen for the quarter
Kuala Lumpur, 18 April 2017 – CapitaLand Malaysia Mall REIT Management Sdn. Bhd. (CMRM), the manager of CapitaLand Malaysia Mall Trust (CMMT), announced today that CMMT recorded net property income (NPI) of RM59.7 million for the quarter from 1 January to 31 March 2017 (1Q 2017), slightly lower than the RM60.6 million for the same period last year (1Q 2016). This was mainly due to lower contribution from the Klang Valley1 shopping malls, which was mitigated by better performance from Gurney Plaza and East Coast Mall.
Distributable income for 1Q 2017 was RM42.3 million and distribution per unit (DPU) was 2.08 sen. The annualised DPU of 8.44 sen translates to an annualised distribution yield of 5.3% based on CMMT’s closing price of RM1.60 per unit on 17 April 2017. As CMMT’s DPU is paid out on a half yearly basis, unitholders can expect to receive their DPU for 1Q 2017, along with their DPU for the quarter ending 30 June 2017, by August 2017.
Mr David Wong, Chairman of CMRM, said: “With the gradual improvement in global growth and the continued rise in domestic demand, Malaysia’s economy is forecast to grow 4.3% to 4.8%2 this year. Concerns about rising costs of living are likely to persist, and consumer and business sentiments are expected to remain cautious. The operating environment for the retail industry remains challenging, with competition intensifying as new malls open. Notwithstanding the challenges, we are optimistic that CMMT’s portfolio of quality malls, which are strategically located in key urban centres and largely focused on necessity shopping, will continue to deliver sustainable income distributions for unitholders in the long term.”
Ms Low Peck Chen, CEO of CMRM, said: “For the quarter under review, Gurney Plaza – CMMT’s largest revenue contributor – turned in a solid performance with a 12.2% increase in NPI, due to higher rental rates achieved from new and renewed leases. The sustained growth of Gurney Plaza and East Coast Mall – which collectively accounted for about 60% of CMMT’s NPI – has helped to moderate the lower revenue contribution from our malls located in Klang Valley, which have been affected by rising competition in the area. As at 31 March 2017, our portfolio of malls registered a stable occupancy rate of 95.0%.
“We continued to refresh our tenant mix and introduce new and exciting concepts in our malls. In 1Q 2017, Tropicana City Mall boosted its food and beverage offerings, including the addition of Oliver Gourmet, Malaysia’s first homegrown gourmet food hall. Those with a love for speed can now enjoy Malaysia’s first indoor kart drifting activity at Blastacars® in Sungei Wang Plaza.
“In response to consumers’ growing desire to engage in more interactive and innovative experiences, we will continue to make improvements to CapitaStar and invest in digital technology to better integrate our offerings into the lifestyles of today’s digitally-savvy consumers. As part of continual efforts to enhance the shopping experience, we have also lined up asset enhancement initiatives to refresh our offerings at Gurney Plaza and Tropicana City Mall, as well as to improve the pedestrian connectivity of Sungei Wang Plaza.”
Summary of CMMT’s results
Gross revenue (RM'000)
Net Property income (RM’000)
Distributable income (RM’000)
For the period
Annualised distribution yield
N.M - Not meaningful
1 Made up of Sungei Wang Plaza, Tropicana City Mall and The Mines.
2 Source: Bank Negara Malaysia Annual Report 2016.
3 Based on closing price of RM1.60 per unit on 17 April 2017.
4 Based on closing price of RM1.45 per unit on 13 April 2016.