CMMT posts net property income of RM215.0 million for FY 2018
Distribution per unit of 7.90 sen for the year
Kuala Lumpur, 29 January 2019 – 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 RM215.0 million for the year 1 January to 31 December 2018 (FY 2018). This was underpinned by stronger performances from Gurney Plaza and East Coast Mall, which partially mitigated the lower contribution from the Klang Valley shopping malls.
FY 2018’s distributable income was RM161.3 million and distribution per unit (DPU) was 7.90 sen. Based on CMMT’s closing price of RM1.06 per unit on 28 January 2019, the distribution yield was 7.45%. Unitholders will receive the total DPU of 3.88 sen per unit for the period from 1 July to 31 December 2018 on 8 March 2019. The book closure date is 15 February 2019.
Mr David Wong, Chairman of CMRM, said: “Against a backdrop of increasing uncertainties in the global economy and concerns around the rising cost of living, we expect consumer and business sentiments to remain cautious in 2019. Despite the challenging operating environment, we will continue to strengthen CMMT’s performance by proactively managing lease renewals and exploring opportunities in asset enhancement initiatives and acquisitions that will create value for our Unitholders.”
Ms Low Peck Chen, CEO of CMRM, said: “Gurney Plaza and East Coast Mall, which collectively accounted for about 68% of CMMT’s NPI, continued their growth momentum in FY 2018. This helped to moderate the lower contribution from our Klang Valley malls, which continued to be affected by increasing competition in the vicinity, as well as downtime for asset enhancement works and lower rents at Sungei Wang and The Mines.”
“In 4Q 2018, we completed the asset enhancement works at Gurney Plaza’s Level 4 and improved the tenant mix at East Coast Mall’s ground floor. Tenants, several of which are new to Penang and Kuantan, have progressively commenced operations at the newly renovated spaces. We expect the completed asset enhancement initiatives at both malls to contribute positively to our performance going forward. In Kuala Lumpur, Sungei Wang’s asset enhancement initiative to reconfigure its annex is on track and shoppers can look forward to new-to-market and novel experiential concepts when the Jumpa lifestyle zone opens in 2H 2019. This is part of our leasing strategy to introduce more offerings to boost the appeal of our malls.”
“We continue to refresh our tenant mix to meet the diverse needs of our shoppers, who can now find popular stores like Huawei, Sport Planet and Mr. D.I.Y. at 3 Damansara, as well as home improvement store SSF and children activity centre Olympic Kids Club at The Mines. At Sungei Wang, the newly renovated main anchor Giant will soon unveil a fresh concept to draw more shoppers.”
“In line with our focus on elevating the customer experience in our malls, we are in the midst of implementing a cashless parking system to bring greater convenience to shoppers. We will continue to leverage on the CapitaStar app and organise more innovative marketing activities to enhance engagement with our shoppers.”
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
 Made up of Sungei Wang, 3 Damansara and The Mines.
 Based on closing price of RM1.06 per unit on 28 January 2019.
 Based on closing price of RM1.40 per unit on 23 January 2018.