CMT’s 1H 2019 net property income increased 10.9% year-on-year
Distributable income improved 7.5% year-on-year
Singapore, 23 July 2019 – 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$273.3 million for the period 1 January 2019 to 30 June 2019 (1H 2019), an increase of 10.9% over the S$246.4 million for the same period last year (1H 2018). Distributable income for 1H 2019 was approximately S$214.0 million, 7.5% higher than 1H 2018. Distribution per unit (DPU) was 5.80 cents, an increase of 3.8% over the DPU of 5.59 cents for 1H 2018.
For the period 1 April 2019 to 30 June 2019 (2Q 2019), distributable income was S$107.7 million, an increase of 7.7% over the S$100.0 million for the same period last year (2Q 2018). DPU was 2.92 cents, 3.9% higher than the 2.81 cents for 2Q 2018.
Based on CMT’s closing price of S$2.60 per unit on 22 July 2019, the annualised distribution yield for 2Q 2019 was 4.50%. With the Book Closure Date on 31 July 2019, Unitholders can expect to receive their DPU for 2Q 2019 on 29 August 2019.
Mr Tony Tan, CEO of CMTML, said: “We are pleased to deliver a positive set of results for 2Q 2019, boosted by 100% contribution from Westgate after we acquired the balance 70.0% interest in 4Q 2018. Funan, which opened on 28 June 2019, will begin to contribute progressively to CMT’s portfolio NPI from 2H 2019.”
“The contributions from Westgate and Funan are expected to anchor CMT’s steady financial performance while we embark on the rejuvenation of Lot One Shoppers’ Mall starting from 3Q 2019. Proposed works include expanding the footprint of the public library to enhance the mall’s community focus and reformatting the cinema to house smaller screens that better serve moviegoers’ demands for variety.”
“Against the backdrop of Singapore’s slowing economy, we remain cautious in our outlook. Competition for the consumer wallet is expected to stay keen with the progressive opening of new malls, although the supply of new retail space is projected to taper off from 2020. As a proactive REIT manager, we will continue to review our portfolio for possibilities to create value through acquisition and development opportunities.”
Summary of CMT’s results
|
2Q 2019 |
2Q 2018 |
Variance (%) |
1H 2019 |
1H 2018 |
Variance (%) |
Gross revenue (S$’000) |
189,539 |
171,366 |
10.6 |
382,261 |
346,530 |
10.3 |
Net property income (S$’000) |
133,152 |
120,792 |
10.2 |
273,250 |
246,443 |
10.9 |
Distributable income to Unitholders (S$’000) |
107,716 |
100,0331 |
7.7 |
214,0092 |
198,9963 |
7.5 |
Distribution per unit (cents) |
2.92 |
2.811 |
3.9 |
5.802 |
5.593 |
3.8 |
Annualised DPU (cents) |
11.71 |
11.271 |
3.9 |
11.702 |
11.273 |
3.8 |
Annualised distribution yield (Based on closing unit price of S$2.60 on 22 July 2019) |
4.50% |
|
|
4.50% |
|
|
1 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 CMT is committed to distribute 100% of its taxable income available for distribution to Unitholders for the financial year ending 31 December 2019. In 1H 2019, CMT had retained S$9.2 million of its taxable income available for distribution to Unitholders, for distribution in FY 2019. Capital distribution and tax-exempt income distribution of S$5.9 million received from CRCT in 1Q 2019 had also been retained for general corporate and working capital purposes.
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 CRCT in respect of the period 7 December 2017 to 31 December 2017 had also been retained for general corporate and working capital purposes.