CMT posts 3Q 2020 distributable income of S$114.3 million
Singapore, 22 October 2020 – CapitaLand Mall Trust Management Limited (CMTML), the manager of CapitaLand Mall Trust (CMT), announced today a net property income (NPI) of S$104.4 million for the quarter ended 30 September 2020 (3Q 2020), 27.6% lower than 3Q 2019. This was mainly due to lower gross rental income arising from rental waivers of S$29.5 million1 granted by CMT to tenants affected by COVID-19, as well as lower gross turnover and other income. Distributable income for 3Q 2020 was S$114.3 million and distribution per unit (DPU) was 3.10 cents.
For the period 1 January to 30 September 2020 (YTD Sep 2020), distributable income was S$224.0 million. This included the release of S$36.4 million or about 78% of the S$46.4 million of taxable income available for distribution retained in 1H 2020. DPU was 6.06 cents, 31.6% lower than the 8.86 cents for YTD Sep 2019.
Unitholders can expect to receive their DPU for 3Q 2020 on 19 November 2020.
Note:
1 The amount excludes any rental relief provided by the Singapore Government.
Mr Tony Tan, CEO of CMTML, said: “We are encouraged by the steady recovery in the operational performance of CMT malls and the broader market since Phase 2 reopening. As at 30 September 2020, almost all of CMT’s tenants have resumed operations and portfolio occupancy remained stable at 98.0%. Portfolio shopper traffic and tenants’ sales per square foot per month for 3Q 2020 have recovered to about 60% and 89% of last year’s levels respectively. Suburban malls saw tenants’ sales recovering to around 97% of the level a year ago. We will continue to focus on operational recovery while staying vigilant in adhering to safe management measures.”
“In the face of the COVID-19 situation, we maintain a cautious outlook for the near term. As Singapore prepares for Phase 3 reopening, CMT will stay the course to preserve the vitality of the retail ecosystem while mitigating the negative impact of the current challenging operating environment on our DPU. Efforts will be directed towards rendering targeted relief support to tenants, sustaining healthy occupancy levels through proactive lease management and extending consumer outreach by leveraging technology. We will also maintain our financial capacity and flexibility through prudent capital management.”
“We would like to once again thank CMT unitholders for their strong support for the merger with CapitaLand Commercial Trust to form CapitaLand Integrated Commercial Trust (CICT). The bigger and more diversified platform will allow CICT to capitalise on current and future real estate trends to create further opportunities for growth.”
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Tenant Relief Package
For YTD Sep 2020, CMT extended a rental relief package amounting to S$183.4 million comprising rental waivers from landlord, property tax rebates and cash grants. In addition, CMT waived turnover rent for qualifying tenants to demonstrate its commitment towards a sustainable retail ecosystem.
Operational performance
For 3Q 2020, CMT’s gross revenue and NPI decreased by 25.3% and 27.6% year-on-year respectively. This was mainly due to rental waivers of S$29.5 million granted by CMT to tenants affected by COVID-19, as well as lower other income and rental on gross turnover.
Capital management
As at 30 September 2020, CMT’s average cost of debt was 3.1% and aggregate leverage was 34.4%.
Updates on merger with CapitaLand Commercial Trust
The trust scheme of arrangement became effective in accordance with its terms on 21 October 2020. The expected date for announcement of the amount and payment date of the clean-up distribution2 to the CMT Unitholders will be announced on 30 October 2020.
Summary of CMT’s results
|
3Q 2020 |
3Q 2019 |
Variance (%) |
YTD Sep 2020 |
YTD Sep 2019 |
Variance (%) |
Gross revenue (S$’000) |
150,277 |
201,111 |
(25.3) |
468,664 |
583,372 |
(19.7) |
Net property income (S$’000) |
104,449 |
144,222 |
(27.6) |
320,801 |
417,472 |
(23.2) |
Distributable income to Unitholders (S$’000) |
114,2941 |
112,9732 |
1.2 |
224,0143 |
326,9824 |
(31.5) |
Distribution per unit (cents) |
3.101 |
3.062 |
1.3 |
6.063 |
8.864 |
(31.6) |
1 In 3Q 2020, CMT released S$36.4 million, part of the S$46.4 million of taxable income available for distribution retained in 1H 2020 to Unitholders. Tax-exempt income distribution of S$4.0 million for the period from 1 January 2020 to 30 June 2020 received from CapitaLand Retail China Trust (CRCT) was retained for general corporate and working capital purposes.
2 In 3Q 2019, CMT released S$1.5 million of its taxable income available for distribution retained in 1H 2019 to Unitholders. Capital distribution and tax-exempt income distribution of S$7.7 million for the period from 1 January 2019 to 13 August 2019 received from CRCT in 3Q 2019 was retained for general corporate and working capital purposes. CMT also received S$6.7 million of capital distribution from Infinity Office Trust (IOT) which was also retained for general corporate and working capital purposes.
3 For YTD Sep 2020, in view of the challenging operating environment due to COVID-19 pandemic, CMT had retained S$10.0 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 CRCT in 1Q 2020 and tax-exempt income distribution of S$4.0 million for the period from 1 January 2020 to 30 June 2020 received from CRCT in 3Q 2020 had been retained for general corporate and working capital purposes.
4 For YTD Sep 2019, CMT retained S$7.7 million of its taxable income available for distribution to Unitholders for distribution in FY 2019. Capital distribution and tax-exempt income distribution of S$13.6 million received from CRCT in YTD Sep 2019 was retained for general corporate and working capital purposes. CMT also received S$6.7 million of capital distribution from IOT which was also retained for general corporate and working capital purposes.
At CMT’s EGM on 29 Sep 2020, all three resolutions relating to the proposed merger of CMT and CCT were duly passed and well supported by unitholders. Mr Tony Tan, CEO of CMT Manager, expressed his appreciation to CMT unitholders for their trust and support.