CapitaLand Mall Trust reports flat 4Q DPU of 2.88 Singapore cents

SINGAPORE (Jan 20): CapitaLand Mall Trust (CMT) has declared a distribution per unit (DPU) of 2.88 Singapore cents for 4Q2016, unchanged from a year ago.

This brings the trust’s DPU for FY2016 to 11.13 Singapore cents, down from 11.25 Singapore cents a year ago.  

Net property income (NPI) for the quarter fell 7.6% to S$116.2 million (RM362.5 million) from S$125.7 million in 4Q2015. For the full financial year, NPI grew 2.9% to S$479.7 million.

Distributable income for the quarter grew 0.2% to S$102.0 million from S$101.9 million.

Gross revenue for 4Q2016 was S$169.3 million, 6.1% lower from S$180.4 million a year ago. The decrease was mainly due to last year’s ceasure of Funan Mall’s operations for redevelopment, as well as the trust’s divestment of Riverdale Mall in December 2015.  

Correspondeingly, property operating expenses, asset management fees and finance costs fell by 2.8%, 1.6% and 4.6% as compared to the previous year, with lower interest expense mainly due to utilisation of net proceeds from sale of Rivervale Mall.

Richard R Magnus, chairman of manager CapitaLand Mall Trust Management Limited (CMTML), notes the trust’s “resilient” performance against a challenging backdrop.

“In ensuring CMT’s malls stay attractive to tenants and shoppers, we have been harnessing technological innovations to serve them better and more efficiently. These include continual improvements to our loyalty programmes and operations, as well as asset enhancement initiatives to refresh our offerings,” he comments.

CMTML says it will continue to focus on sustaining DPU going forward.

CMT’s current portfolio comprises 16 shopping malls in the suburban areas and downtown core of Singapore. The trust owns approximately 14.1% interest in CapitaLand Retail China Trust (CRCT), the first China shopping mall REIT listed on the SGX.

Units of CMT closed 1 Singapore cent lower at S$1.97 on Thursday. — theedgemarkets.com.sg