CLMT’s 3Q NPI jumps 53% to RM58 mil, pays 1.05 sen DPU

• Distributable income for the quarter under review grew 29% to RM28.7 million from RM22.25 million, while distribution per unit (DPU) improved to 1.05 sen from 1.01 sen.

KUALA LUMPUR (Oct 25): CapitaLand Malaysia Trust’s (CLMT) net property income (NPI) climbed 52.6% to RM58.32 million for the third quarter ended Sept 30, 2023 (3QFY2023) from RM38.21 million a year earlier on higher revenue, boosted by income contributions from Queensbay Mall and more revenue contributions from its retail properties.

CLMT’s quarterly revenue climbed 46% to RM103.64 million from RM71 million previously, its manager CapitaLand Malaysia REIT Management Sdn Bhd (CMRM) announced on Wednesday.

Distributable income for the quarter under review grew 29% to RM28.7 million from RM22.25 million, while distribution per unit (DPU) improved to 1.05 sen from 1.01 sen.

CLMT’s NPI for the cumulative nine months ended Sept 30, 2023 (9MFY2023) increased by 38.2% to RM154.39 million from RM111.71 million in the same period a year ago, as nine-month revenue expanded 38.6% to RM286.88 million from RM206.92 million.

Nine-month distributable income amounted to RM77.14 million, a 20% increase from the RM64.27 million recorded in 9MFY2022. DPU inched up to 2.98 sen from 2.96 sen.

As at end-September, CLMT's portfolio had an occupancy rate of 89.6%. The retail portfolio achieved a positive rental reversion of 6.3%, said CMRM chief executive officer Tan Choon Siang.

“Shopper traffic has increased by 21.6% over the same period last year, driven by exciting activation programmes designed to create unique experiences for our mall visitors. This strategy has also enabled our tenants to increase sales per square foot by 9.1% year-on-year,” said Tan.

CLMT has announced the plan to divest 3 Damansara office tower as part of its ongoing portfolio reconstitution strategy. Simultaneously, it has completed the acquisition of the Glenmarie Distribution Centre and has initiated the retrofitting process to convert the warehouse into a temperature-controlled distribution centre.

According to Tan, these moves will further strengthen CLMT’s presence in Malaysia’s growing logistics sector.

“On the retail front, the asset enhancement initiative at 3 Damansara is on track to complete in the fourth quarter of this year. We are also intensifying our efforts to refresh the tenant mix offerings at Sungei Wang Plaza and The Mines to enhance the malls’ attractiveness.

“Despite an increasingly challenging macroeconomic environment, we remain steadfast in pursuing our ongoing portfolio reconstitution strategy and are well-positioned to continue to deliver long-term sustainable returns to unitholders,” Tan added.

At Wednesday’s close, CLMT’s share price was flat at 56 sen with a market capitalisation of RM1.53 billion.

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