CMMT posts net property income of RM52.8 million for 1Q 2019
Distribution per unit of 1.71 sen for the quarter
Kuala Lumpur, 23 April 2019 – CapitaLand Malaysia Mall REIT Management Sdn. Bhd. (CMRM), the manager of CapitaLand Malaysia Mall Trust (CMMT), announced today that CMMT posted a net property income (NPI) of RM52.8 million for the quarter from 1 January to 31 March 2019 (1Q 2019), 7.5% lower than the RM57.0 million recorded for the same period last year (1Q 2018). This was mainly due to lower contribution from the Klang Valley[1] shopping malls, which was mitigated by the stronger performances from Gurney Plaza, East Coast Mall and Tropicana City Office Tower.
Distributable income for 1Q 2019 was RM35.0 million and distribution per unit (DPU) was 1.71 sen. The annualised DPU of 6.94 sen translates to an annualised distribution yield of 6.3% based on CMMT’s closing price of RM1.11 per unit on 22 April 2019. As CMMT’s DPU is paid out on a half yearly basis, unitholders can expect to receive their DPU for 1Q 2019, along with their DPU for the quarter ending 30 June 2019, by August 2019.
Mr David Wong, Chairman of CMRM, said: “Against a backdrop of uncertainties in the global and domestic economies, we expect consumer and business sentiments to remain challenging in 2019. We strive to continually enhance the appeal of CMMT’s malls through asset enhancement initiatives, improvement of trade mix and marketing initiatives.”
Ms Low Peck Chen, CEO of CMRM, said: “In 1Q 2019, Gurney Plaza and East Coast Mall continued to chart year-on-year NPI growth. The contribution from these two malls, as well as the fully occupied Tropicana City Office Tower, helped to moderate the lower contribution from our Klang Valley malls, which have been experiencing vacancies in an increasingly competitive environment. The performances of Sungei Wang and The Mines have also been affected by downtime for asset enhancement works and lower rents.”
Ms Low added: “In view of the general market uncertainties that are impacting business and consumer sentiments, we maintain a cautious outlook for FY 2019. We will focus on improving the operational efficiency of our Klang Valley malls through proactive leasing strategies and tenant mix adjustments. We will also organise more engaging marketing activities to drive footfall to these malls. Both Gurney Plaza and East Coast Mall are expected to continue performing well, given their respective competitive strengths and successful completion of asset enhancement initiatives in 2018.”
Ms Low continued: “The leasing progress for the upcoming Jumpa lifestyle zone in Sungei Wang has exceeded 50%. We expect the take-up rate to ramp up progressively as we approach Jumpa’s opening in 2H 2019.”
“As the leading shopping destination in the Northern region, Gurney Plaza has signed up several new international fashion, food and beverages and children-related brands. Shoppers of Gurney Plaza can look forward to the upcoming completion of Parkson Elite’s upgrading works and a new cashless parking system from mid-May.”
Summary of CMMT results
|
1Q 2019 |
1Q 2018 |
Change (%) |
Gross revenue (RM ’000) |
87,905 |
89,733 |
(2.0) |
Net property income (RM ’000) |
52,751 |
57,045 |
(7.5) |
Distributable income (RM ’000) |
34,955 |
41,221 |
(15.2) |
DPU (sen) |
|||
For the period |
1.71 |
2.02 |
(15.3) |
Annualised DPU |
6.94 |
8.19 |
(15.3) |
Annualised distribution yield |
6.3%[2] |
7.1%[3] |
N.M. |
N.M. – Not meaningful
[1] Made up of Sungei Wang, 3 Damansara and The Mines.
[2] Based on closing price of RM1.11 per unit on 22 April 2019.
[3] Based on closing price of RM1.15 per unit on 23 April 2018.