CMT posts 1Q 2020 distributable income of S$31.6 million
CMT posts 1Q 2020 distributable income of S$31.6 million
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In support of Temasek Foundation’s #BYOBclean initiative, CapitaLand malls were among the venues where the public could collect free hand sanitiser in March 2020.
Singapore, 30 April 2020 –CapitaLand Mall Trust Management Limited (CMTML), the manager of CapitaLand Mall Trust (CMT), announced today a net property income (NPI) of S$148.3 million for the period 1 January 2020 to 31 March 2020 (1Q 2020). This is an increase of 5.9% over the S$140.1 million for the same period last year (1Q 2019). The improvement was mainly attributed to the opening of Funan in June 2019, partially offset by the amortisation of rental rebates granted to tenants affected by COVID-19.
In view of the uncertainty and challenges brought about by the rapidly evolving COVID-19 pandemic, CMT had retained S$69.6 million of taxable income in 1Q 2020. This led to a distributable income of approximately S$31.6 million for the quarter, 70.3% lower than 1Q 2019. Distribution per unit (DPU) for 1Q 2020 was 0.85 cents, a decrease of 70.5% over the DPU of 2.88 cents for 1Q 2019.
The Record Date is 12 May 2020 and Unitholders can expect to receive their DPU for 1Q 2020 on 5 June 2020.
“CMT is facing COVID-19 from a strong financial position, with a healthy aggregate leverage of 33.3% and 100% unencumbered assets. However, we must be prepared for the disruptions from the pandemic to continue for a prolonged period of time. To maintain our financial resilience, we are suspending all non-essential operating and capital expenditure. We are also deferring all asset enhancement and development initiatives, except for the ongoing upgrading works at Lot One Shoppers’ Mall.”
“To preserve the vitality of our retail ecosystem, CMT has been among the first in Singapore to introduce a tenant relief package since the outbreak began. We remain committed to navigating these difficult times with our tenants while ensuring that our efforts are sustainable for CMT and Unitholders. Recent regulations to provide Singapore real estate investment trusts with greater flexibility to manage their cash flows and raise funds have been timely in enhancing CMT’s financial resilience. With different parties working hand in hand, I am confident CMT’s retail ecosystem will emerge stronger on the other side of the pandemic. When the operating environment normalises, our quality portfolio, offering mainly necessity shopping, will be well-placed to ride the upturn.”
Mr Tony Tan, CEO of CMTML, said: “CMT delivered a modest financial performance in 1Q 2020, despite an increasingly difficult operating environment since 7 February 2020 when Singapore’s DORSCON alert was raised to orange. The impact from COVID-19 is expected to deepen in 2Q 2020 due to the ‘circuit breaker’ period, during which approximately 25% of the portfolio’s tenants are operating. In view of the continuing headwinds, we have exercised prudence by retaining about 69% of CMT’s 1Q 2020 taxable income to maintain our financial capacity and flexibility. As solidarity is key to overcoming the unprecedented challenges from COVID-19, we seek Unitholders’ support while we work closely with our tenants to build greater resilience for our retail ecosystem. This is also in line with the long-term interests of Unitholders.”
Tenant relief package
In line with its support for tenants, CMT will be passing on the full savings from the property tax rebates granted by the government. To date, CMT has committed a rental relief package totalling approximately S$114 million. This translates into 100% rental rebates in April and May 2020 for almost all the retail tenants, inclusive of the value of property tax rebates. Additional rental rebate was granted from 27 to 31 March for tenants ordered to close their premises since 27 March 2020. On top of that, eligible tenants were granted a waiver on their turnover rent and were permitted to use one-month security deposit to offset their rents in March 2020.
As the COVID-19 situation remains fluid, CMT will maintain regular and constructive communication with its tenants and render additional support, where appropriate.
Summary of CMT Results
Gross revenue (S$’000)
Net property income (S$’000)
Distributable income to Unitholders (S$’000)
Distribution per unit (cents)
1 For 1Q 2020, in view of the uncertainty and challenges brought about by the rapidly evolving COVID-19 pandemic, CMT had retained S$69.6 million of its taxable income available for distribution to Unitholders. In addition, capital distribution of S$4.8 million for the period from 14 August 2019 to 31 December 2019 received from CapitaLand Retail China Trust (CRCT) in 1Q 2020 had been retained for general corporate and working capital purposes.
2 In 1Q 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.
For 1Q 2020, CMT’s gross revenue and NPI increased by 6.0% and 5.9% year-on-year respectively. The increase in gross revenue was mainly due to the commencement of Funan operations (retail and office components) in June 2019, partially offset by the amortisation of rental rebates granted to tenants affected by COVID-19. In the quarter, Funan contributed S$15.8 million to the total gross revenue.
Proactive capital management
As at 31 March 2020, CMT’s average cost of debt was 3.2% and aggregate leverage was 33.3%.
 DORSCON stands for DiseaseOutbreak Response SystemCondition.