CMMT records distribution per unit of 2.02 sen for 1Q 2018

Kuala Lumpur, 24 April 2018 – CapitaLand Malaysia Mall REIT Management Sdn. Bhd. (CMRM), the manager of CapitaLand Malaysia Mall Trust (CMMT), announced today that CMMT recorded a distribution per unit (DPU) of 2.02 sen for the quarter from 1 January to 31 March 2018 (1Q 2018).  Annualised DPU for the quarter was 8.19 sen, which translated to an annualised distribution yield of 7.1% based on CMMT’s closing price of RM1.15 per unit on 23 April 2018.

As CMMT’s DPU is paid out on a half yearly basis, unitholders can expect to receive their DPU for 1Q 2018, together with their DPU for the quarter ending 30 June 2018, by August 2018.

For the quarter under review, CMMT recorded net property income (NPI) of RM57.0 million.  Gurney Plaza and East Coast Mall achieved higher rental income year-on-year. 

Mr David Wong, Chairman of CMRM, said: “Malaysia’s economy is expected to grow by 5.5% to 6.0%[1] this year, led by strengthening domestic demand and a resilient export sector.  The retail operating environment in Malaysia will remain challenging, in view of ongoing concerns about rising costs of living and growing competition from new shopping malls.  Despite the headwinds, CMMT remains committed to deliver sustainable returns for unitholders by enhancing property yields through asset enhancement initiatives and introducing new retail concepts.”

CMMT recorded net property income of RM57.0 million for 1Q 2018. Gurney Plaza and East Coast Mall (pictured) achieved higher rental income year-on-year.

Ms Low Peck Chen, CEO of CMRM, said: “Amidst a challenging operating environment, we achieved a positive rental reversion of 2.2%.  Portfolio occupancy remained stable, registering 93.7% as at 31 March 2018.”

“To improve the diversity of the tenant mix in our malls, we are expanding the food and beverage options at The Mines’ Level 3 and Tropicana City Mall’s ground floor.  Shoppers can also look forward to new international fashion labels at East Coast Mall’s Level 1 when the area completes the asset enhancement works in 2Q 2018.”

“For CMMT’s interest in Sungei Wang, we plan to reconfigure the annex space into a vibrant and energetic lifestyle zone that complements the retail offerings in the BBKLCC shopping belt.  Named Jumpa[2], we envision this space as the new choice destination for locals and tourists alike.  The annex will house trendy retail, F&B, ‘athleisure’ and family entertainment components over a net lettable area of 170,000 square feet spread across five levels.  The new concept has already attracted the interest of local and international retailers, and a showsuite has been set up to support the leasing efforts.  Subject to authorities’ approval, Jumpa is targeted to be completed by 1Q 2019.”

Meaning "to meet" in Bahasa Melayu, the Jumpa annex (pictured) will house trendy retail, F&B, ‘athleisure’ and family entertainment components over a net lettable area of 170,000 square feet spread across five levels.

Summary of CMMT’s results

 

 

1Q 2018

1Q 2017

Change (%)

Gross revenue (RM ’000)

89,733

92,444

(2.9)

Net property income (RM ’000)

57,045

59,716

(4.5)

Distributable income (RM ’000)

41,221

42,320

(2.6)

DPU (sen)

For the period

2.02

2.08

(2.9)

Annualised DPU

8.19

8.44

(3.0)

Annualised distribution yield

7.1%[3]

5.3%[4]

N.M.

N.M. – Not meaningful

 

[1] Source: Bank Negara Malaysia Annual Report 2017.

[2] Jumpa means ‘to meet’ in Bahasa Melayu.

[3] Based on closing price of RM1.15 per unit on 23 April 2018.

[4] Based on closing price of RM1.60 per unit on 17 April 2017.

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