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KUALA LUMPUR (April 19): CapitaLand Malaysia Mall Trust’s (CMMT) net property income (NPI) for the first quarter ended March 31, 2017 (1QFY17) slid 1.5% to RM59.72 million from RM60.6 million a year ago, on lower contribution from its Klang Valley shopping malls.
Consequently, its distribution per unit (DPU) for the quarter under review still declined by 1.9% to 2.08 sen, from 2.12 sen in 1QFY16.
As CMMT’s DPU is paid out on a half-yearly basis, unitholders can expect to receive their 1QFY17 DPU, together with 2QFY17 DPU, by August 2017.
The largest drag on its 1QFY17 income came from Sungei Wang Plaza, which registered a 38.2% fall in NPI to RM4.8 million from RM7.76 million a year ago, as the mall continued to be temporarily affected by the ongoing mass rapid transit works and the closure of BB Plaza.
“Lower gross revenue was [also] recorded for The Mines and Tropicana City Property, mainly due to lower rental rates and occupancy. The decrease was mitigated by better performance from Gurney Plaza on the back of higher rental rates achieved from new and renewed leases,” it said. Its East Coast Mall in Kuantan, Pahang also registered higher NPI.
The trust’s revenue fell 1.28% to RM92.44 million in 1QFY17 from RM93.64 million a year ago.
In a separate statement, CMMT’s manager CapitaLand Malaysia Mall REIT Management Sdn Bhd (CMRM) chairman David Wong said concerns about rising costs of living are likely to persist, and consumer and business sentiments are expected to remain cautious.
Notwithstanding that, he said CMRM is optimistic that CMMT’s portfolio of quality malls, which are strategically located in key urban centres and largely focused on necessity shopping, will continue to deliver sustainable income distributions for unitholders in the long term.
This article first appeared in The Edge Financial Daily, on April 19, 2017.
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