CLMT posts net property income of RM33.2 million for 4Q 2021
Distribution per unit of 0.83 sen for the period
Kuala Lumpur, 27 January 2022 – CapitaLand Malaysia REIT Management Sdn. Bhd. (formerly known as CapitaLand Malaysia Mall REIT Management Sdn. Bhd. or CMRM), the manager of CapitaLand Malaysia Trust (formerly known as CapitaLand Malaysia Mall Trust or CLMT), announced today a net property income (NPI) of RM33.2 million for the period 1 October to 31 December 2021 (4Q 2021), marginally lower than the NPI of RM34.0 million for the corresponding period of the previous year. Distributable income for 4Q 2021 was RM17.7 million and distribution per unit (DPU) was 0.83 sen.
For the financial year ended 31 December 2021 (FY 2021), CLMT registered NPI of RM103.1 million, 22.7% lower compared to FY 2020. This was mainly due to lower gross revenue, which was impacted by lower occupancy and negative rental reversions. DPU for FY 2021 was 1.84 sen, 38.7% lower than the DPU of 3.00 sen for FY 2020. The Distribution Reinvestment Plan will be applied to the final income distribution of 0.98 sen per unit for the period 1 July to 31 December 2021. Details on the issue price, entitlement and payment dates will be announced in due course.
As at 31 December 2021, independent valuers appraised CLMT’s investment properties at RM3.8 billion, a marginal decrease from RM3.9 billion a year ago.
Mr Lui Chong Chee, Chairman of CMRM, said: “CLMT’s FY 2021 financial performance reflected the challenges that continued to afflict Malaysia’s retail sector during the second year of COVID-19. While there were promising signs of a retail recovery in 4Q 2021, the recent emergence of new virus variants has cast a shadow over the economic recovery. On a more positive note, there has been steady progress in the Government’s mitigation strategies to contain the pandemic, with almost 98% of Malaysia’s total adult population fully vaccinated.”
“Against this backdrop, we will stay vigilant and focused on enhancing the operational stability of CLMT’s portfolio, while remaining on an active lookout for inorganic growth opportunities. Given the economic uncertainties, we will approach all potential acquisitions, in existing and new asset classes, with discipline.”
Mr Tan Choon Siang, CEO of CMRM, said: “From 3Q 2021 to 4Q 2021, CLMT’s retail operating metrics showed encouraging signs of recovery. Quarter-on-quarter, shopper traffic and tenant sales per square foot in 4Q 2021 grew 161% and 115% respectively. Portfolio occupancy remained stable at 82.5% as at 31 December 2021. There were more than 20 tenants, taking up about 43,000 square feet of net lettable area, which opened in 4Q 2021.”
“As part of our ongoing efforts to strengthen CLMT’s financial position and liquidity, we completed several initiatives in 4Q 2021 to reduce financing costs and lower refinancing risks. These included refixing the coupon rate of the RM300.0 million unrated and secured Medium Term Notes at a lower rate for the remaining tenure of 1.5 years, and extending the tenure of an existing secured term loan for another five years.”
“In view of the continuing headwinds, we are adopting a cautious outlook for the near term. We aim to maintain the stability of CLMT’s portfolio by balancing the proportion of longer- and shorter-term leases in our portfolio, and through retaining existing tenants and attracting new tenants. We will also strengthen our financial capacity and flexibility through prudent capital management.”
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