CMT 1H 2018 net property income up 3.7% year-on-year
Distributable income up 2.5% year-on-year
Singapore, 20 July 2018 –CapitaLand Mall Trust Management Limited (CMTML), the manager of CapitaLand Mall Trust (CMT), announced today that CMT has achieved net property income (NPI) of S$246.4 million for the period 1 January 2018 to 30 June 2018 (1H 2018), an increase of 3.7% over the S$237.6 million for the same period last year (1H 2017). Distributable income for 1H 2018 was approximately S$199.0 million, 2.5% higher than 1H 2017. Distribution per unit (DPU) was 5.59 cents, an increase of 2.0% over the DPU of 5.48 cents for 1H 2017.
For the period 1 April 2018 to 30 June 2018 (2Q 2018), distributable income was S$100.0 million, an increase of 2.9% over the S$97.2 million for the same period last year (2Q 2017). DPU was 2.81 cents, 2.2% higher than the 2.75 cents for 2Q 2017.
Based on CMT’s closing price of S$2.14 per unit on 19 July 2018, the annualised distribution yield for 2Q 2018 was 5.27%. With the Book Closure Date on 30 July 2018, Unitholders can expect to receive their DPU for 2Q 2018 on 29 August 2018.
Mr Tony Tan, CEO of CMTML, said: “CMT overcame soft market conditions to deliver another set of stable results for 2Q 2018. Underpinned by our well-located shopping malls and proactive asset management, CMT’s portfolio occupancy remained resilient at 98.0% as at 30 June 2018, well above the average market occupancy of 92.5%.”
“We continually evaluate initiatives to strengthen the appeal of our malls through asset enhancement. For instance, to improve shopper circulation at Westgate, a new mall entrance has been created at Level 1 and a new set of escalators connecting Level 1 and 2 will be added. We will also put up air-conditioned enclosure to the outdoor refreshment areas to enhance diners’ comfort. We target to complete these enhancement works by 4Q 2018.”
“During the quarter, we completed the divestment of Sembawang Shopping Centre. The net sale proceeds have been used to repay existing borrowings, leading to improved financial flexibility for CMT and a lower gearing of 31.5% as at 30 June 2018.”
 Source: Urban Redevelopment Authority, Release of 1st Quarter 2018 Real Estate Statistics, 27 April 2018.
Summary of CMT’s results
Gross revenue (S$’000)
Net property income (S$’000)
Distributable income to Unitholders (S$’000)
Distribution per unit (cents)
Annualised DPU (cents)
Annualised distribution yield (Based on closing unit price of S$2.14 on 19 July 2018)
1 CMT is committed to distribute 100.0% of its taxable income available for distribution to Unitholders for the financial year ending 31 December 2018. In 2Q 2018, CMT had retained S$4.6 million of its taxable income available for distribution to Unitholders for distribution in FY 2018.
2 In 2Q 2017, CMT had retained S$2.6 million of its taxable income available for distribution to Unitholders for distribution in FY 2017.
3 For 1H 2018, CMT had retained S$13.7 million of its taxable income available for distribution to Unitholders for distribution in FY 2018. Capital distribution and tax-exempt income distribution of S$1.0 million received from CapitaLand Retail China Trust (CRCT) in respect of the period 7 December 2017 to 31 December 2017 had also been retained for general corporate and working capital purposes.
4 For 1H 2017, CMT had retained S$7.6 million of its taxable income available for distribution to Unitholders for distribution in FY 2017. Capital distribution and tax-exempt income distribution of S$5.8 million received from CRCT in 1Q 2017 had also been retained for general corporate and working capital purposes.
For 2Q 2018, CMT’s gross revenue and NPI edged up 1.6% and 2.8% respectively year-on-year. The stronger performance was mainly due to higher gross rental income from Plaza Singapura, Bedok Mall, Bugis Junction and Tampines Mall. The increase was partially offset by lower occupancy and rental rates contracted on new and renewed leases at JCube and Bukit Panjang Plaza, and lower gross revenue from Sembawang Shopping Centre which was divested on 18 June 2018.
Proactive capital management
On 9 May 2018, CMT MTN Pte. Ltd., a wholly owned subsidiary of CMT, issued a 5.5-year fixed rate notes of S$130.0 million due 2023 through its S$3.5 billion Multicurrency Medium Term Note Programme at 3.2115% per annum. The proceeds from the issuances have been used to repay the existing bank borrowings of CMT.
As at 30 June 2018, CMT’s average cost of debt and aggregate leverage were 3.1% and 31.5% respectively.