SINGAPORE (July 20): The manager of CapitaLand Mall Trust (CMT) has achieved a distribution per unit (DPU) of 5.59 cents for 1H18, an increase of 2.0% over the DPU of 5.48 cents for 1H17.
This follows the announcement of a 2Q18 DPU of 2.81 cents, up 2.2% from a year ago.
For the 2Q18 ended June, distributable income came in at $100 million, an increase of 2.9% over the $97.2 million for the same period last year.
For 2Q18, CMT’s gross revenue and NPI edged up 1.6% and 2.8% respectively year-on-year. The stronger performance was mainly due to higher gross rental income from Plaza Singapura, Bedok Mall, Bugis Junction and Tampines Mall. The increase was partially offset by lower occupancy and rental rates contracted on new and renewed leases at JCube and Bukit Panjang Plaza, and lower gross revenue from Sembawang Shopping Centre which was divested on 18 June 2018.
For the 1H ended June, net property income (NPI) cam in at $246.4 million, an increase of 3.7% over the $237.6 million for the same period last year 1H17. Distributable income for 1H18 was $199 million, 2.5% higher than 1H17.
Tony Tan, CEO of CapitaLand Mall Trust Management, says: “CMT overcame soft market conditions to deliver another set of stable results for 2Q18. Underpinned by our well-located shopping malls and proactive asset management, CMT’s portfolio occupancy remained resilient at 98.0% as at 30 June 2018, well above the average market occupancy of 92.5%.”
“We continually evaluate initiatives to strengthen the appeal of our malls through asset enhancement. For instance, to improve shopper circulation at Westgate, a new mall entrance has been created at Level 1 and a new set of escalators connecting Level 1 and 2 will be added. We will also put up air-conditioned enclosure to the outdoor refreshment areas to enhance diners’ comfort. We target to complete these enhancement works by 4Q18.”
“During the quarter, we completed the divestment of Sembawang Shopping Centre. The net sale proceeds have been used to repay existing borrowings, leading to improved financial flexibility for CMT and a lower gearing of 31.5% as at June 30.”
