CLMT posts net property income of RM69.9 million for YTD 2021
Distribution per unit of 1.01 sen for the period
Kuala Lumpur, 21 October 2021 – CapitaLand Malaysia REIT Management Sdn. Bhd. (formerly known as CapitaLand Malaysia Mall REIT Management Sdn. Bhd.) (CMRM), the manager of CapitaLand Malaysia Trust (formerly known as CapitaLand Malaysia Mall Trust) (CLMT), announced today a net property income (NPI) of RM69.9 million for the nine months ended 30 September 2021 (YTD 2021), 29.7% lower than the NPI of RM99.5 million achieved for the corresponding period last year. This was mainly attributed to a lower gross rental income and higher rental relief for eligible tenants, which resulted from more frequent and extended movement controls during the period compared to the previous year. Distributable income for YTD 2021 was RM21.3 million and distribution per unit (DPU) was 1.01 sen.
Mr Lui Chong Chee, Chairman of CMRM, said: “It is heartening to note that 90% of Malaysia’s adult population have completed their COVID-19 vaccination, one of the prescribed targets for the country to return to normalcy. Currently, almost all retail trades for shopping malls have resumed operations and dine-in is allowed for fully vaccinated shoppers. The resumption of interstate travel from 11 October 2021 is expected to further benefit the CLMT malls that cater to domestic travellers.”
“While we are encouraged by the gradual restarting of Malaysia’s economy, we are mindful that near-term operating challenges remain, given the fluid nature of the pandemic and its impact on consumer and business sentiments. We will continue to focus on CLMT’s operational recovery and aim to stabilise the portfolio through proactive asset and lease management.”
Ms Low Peck Chen, CEO of CMRM, said: “The operational challenges arising from the various safety measures imposed from June 2021 continue to affect CLMT’s financial performance and tenants’ business operations. We continued to extend targeted rental relief to support eligible tenants to help alleviate their cashflow and operating difficulties. Portfolio occupancy as at 30 September 2021 was 81.6%, while YTD 2021 shopper traffic was 29.5% lower year-on-year.”
“Under Malaysia’s National Recovery Plan1, various economic sectors have reopened, including dining in and domestic tourism, which are vital for economic recovery. Portfolio shopper traffic began to register improvements from September 2021, following the resumption of dine-in services. We expect this trend to continue as domestic tourism activities and interstate travel pick up in the following quarter. Notwithstanding these positive developments, near-term challenges in Malaysia’s retail sector remain. We will therefore continue to balance rental reversions and occupancy levels to ensure portfolio stability.”
“At Sungei Wang Plaza, the façade upgrading works by the management corporation are in progress and the mall is expected to unveil a modern look by year-end. We also plan to embark on a space reconfiguration exercise at 3 Damansara to refresh its offerings on the lower ground floor.”
CLMT will continue to leverage CapitaStar and develop digital marketing initiatives to boost tenant sales. For the safety and well-being of shoppers, tenants, visitors and employees, precautionary measures in accordance with relevant authorities’ guidelines will continue at all CLMT properties.
Summary of CLMT’s results
1 The National Recovery Plan (NRP) is a four-phased exit strategy from June to December 2021 from the pandemic. Based on the NRP, the thresholds to transition to a more relaxed phase are premised on the number of daily average cases; state of the healthcare system; and percentage of fully vaccination population.