CMMT posts net property income of RM103.1 million for 1H 2019
Distribution per unit of 3.22 sen for 1H 2019
Kuala Lumpur, 25 July 2019 – CapitaLand Malaysia Mall REIT Management Sdn. Bhd. (CMRM), the manager of CapitaLand Malaysia Mall Trust (CMMT), announced today that CMMT had achieved a net property income (NPI) of RM103.1 million for the period 1 January to 30 June 2019 (1H 2019). Gurney Plaza, East Coast Mall and Tropicana City Office Tower turned in stronger performances that partially mitigated lower contributions from the Klang Valley1 shopping malls.
Distributable income for 1H 2019 was RM65.8 million and distribution per unit (DPU) was 3.22 sen. The annualised DPU of 6.49 sen for 1H 2019 translates to an annualised distribution yield of 6.1% based on CMMT’s closing price of RM1.06 on 24 July 2019. Unitholders can expect to receive their DPU of 3.22 sen per unit for 1H 2019 on 3 September 2019.
Mr David Wong, Chairman of CMRM, said: “We continue to reinforce our efforts in strengthening the appeal of CMMT malls through proactively managing lease renewals, introducing fresh retail concepts and organising more shopper-centric initiatives. Amid a challenging operating environment, we are optimistic that the underlying strength of CMMT’s portfolio of quality malls will continue to deliver sustainable income distributions for unitholders in the long term.”
Ms Low Peck Chen, CEO of CMRM, said: “For the first half of 2019, Gurney Plaza and East Coast Mall continued their steady performance to chart year-on-year revenue growth. Our Klang Valley malls remain affected by the growing supply of retail space. Sungei Wang and The Mines were further impacted by downtime from asset enhancement works and vacancies.”
“The Jumpa lifestyle zone in Sungei Wang is on track to open by end-September. The new retail concepts at Jumpa will complement the existing offerings in the BBKLCC2 shopping belt and help to revitalise and boost the appeal of Sungei Wang. For The Mines and 3 Damansara, we are focusing on strengthening their tenant mix in key trade categories to enhance their positioning as necessity shopping malls.”
“In line with our digital strategy to enhance shopper engagement, we are pleased to announce that the CapitaStar rewards programme will be extended to Sungei Wang3 next month.
Shoppers will then be able to earn STAR$®4 in all seven CapitaLand malls in Malaysia. We will continue to strengthen engagement with shoppers by expanding the selection of merchant deals and rewards on the CapitaStar programme. As part of continual efforts to improve the shopping experience at our malls, we have also introduced new food and beverage options at 3 Damansara and added more offerings at East Coast Mall’s newly reconfigured retail zone at the basement car park.”
1 Made up of Sungei Wang, 3 Damansara and The Mines.
2 Bukit Bintang Kuala Lumpur City Centre.
3 Participating stores in CMMT parcels only.
4 Participating stores only upon a minimum spend of RM30.
Summary of CMMT’s results
|
2Q 2019 |
2Q 2018 |
Change (%) |
1H 2019 |
1H 2018 |
Change (%) |
Gross revenue (RM ’000) |
84,848 |
87,354 |
(2.9) |
172,753 |
177,087 |
(2.4) |
Net property income (RM ’000) |
50,329 |
53,359 |
(5.7) |
103,080 |
110,404 |
(6.6) |
Distributable income (RM ’000) |
30,867 |
40,813 |
(24.4) |
65,822 |
82,034 |
(19.8) |
DPU (sen) |
||||||
For the period |
1.51 |
2.00 |
(24.5) |
3.22 |
4.02 |
(19.9) |
Annualised DPU |
6.06 |
8.02 |
(24.4) |
6.49 |
8.11 |
(20.0) |
Annualised distribution yield |
5.7%5 |
6.5%6 |
N.M. |
6.1%5 |
6.6%6 |
N.M. |
N.M. – Not meaningful
5 Based on closing price of RM1.06 per unit on 24 July 2019.
6 Based on closing price of RM1.23 per unit on 24 July 2018.