SINGAPORE (Apr 20): The manager of CapitaLand Mall Trust (CMT) has declared a 1Q18 distribution per unit (DPU) of 2.78 cents, 1.8% higher than its 1Q DPU of 2.73 cents a year ago on higher revenue and lower property expenses and finance costs.
Gross revenue for 1Q18 grew 1.8% to $175.2 million from $172 million a year ago while net property income rose 4.7% to $125.7 million from $120.1 million a year ago.
The revenue growth was mainly attributed to higher occupancy for IMM, Clarke Quay, The Atrium@Orchard and Plaza Singapura as well as higher car park income.
Property operating expenses fell 4.7% to $49.5 million from $52 million in 1Q17 due to lower marketing and utilities expenses.
Meanwhile, finance costs for the quarter declined by 5.2% to $24.4 million mainly due to refinancing of its $100 million and $150 million medium-term notes in 2017, medium-term note issuances at lower interest rates and repayment of the bank borrowings in Jan.
Management fees fell 1% on-year to $11 million from $11.1 million.
In a Friday filing, Tony Tan, CEO of CapitaLand Trust Management, says CMT’s portfolio occupancy remains resilient at 98.9% as at end March, which he attributes to the trust’s portfolio of well-located shopping malls and proactive asset management.
The manager says it will continue to focus on sustaining CMT’s DPU going forward.
Unitholders can expect to receive their DPU for the quarter on May 30.
Based on CMT’s closing price of $2.10 per unit on Friday, the annualised distribution yield for 1Q18 was 5.37%.
